Key takeaways:
- With reference to the now-defunct crypto lending platform Genesis, venture capital firm DCG declared that it has paid off all of its short-term loans.
- DCG CEO Barry Silbert emphasized that these loan obligations were met in spite of the difficult circumstances in the cryptocurrency market all year long.
With reference to the now-defunct cryptocurrency lending platform Genesis, venture capital firm Digital Currency Group (DCG) declared that it has paid off all of its short-term loans.
Approximately $700 million of the roughly $1 billion that DCG paid to creditors last year was paid to Genesis, according to a statement the company posted on X (previously Twitter) on January 6. DCG also stated that it is current on its financial obligations. Statement reads:
“DCG is pleased to announce that we have completed a payoff of all short-term loans from Genesis. In total, DCG has paid off more than $1 billion of debt to its creditors in just over a year, including nearly $700 million to Genesis, satisfying all obligations currently due.”
In addition, DCG CEO Barry Silbert emphasized that these loan obligations were met in spite of the difficult circumstances in the cryptocurrency market all year long. Silbert said:
“We have now repaid over $1 bn of debt, including this ~$700 mm, despite the headwinds faced by the industry. I’m excited about the industry’s next chapter and DCG’s leadership role in it,”
DCG committed to paying back all of Genesis’ existing loans by April 2024 in November 2023. The goal of the proposed agreement was to enable Genesis to settle a lawsuit that it had filed against DCG in September, which sought to have the company repay past-due loans totaling approximately $620 million.
Genesis stopped taking withdrawals in November 2022, and in January, they filed for bankruptcy. The top 50 debtors of the corporation, which included companies like Gemini and VanEck’s New Finance Income Fund, were owed more than $3.5 billion.
In order to facilitate the distribution of assets to creditors, Celsius Network, the bankrupt cryptocurrency lending company, has disclosed plans to unstake its current Ethereum holdings. Celsius promised to pay back creditors by distributing Bitcoin or Ether. According to reports, Celsius currently owns one-third of the ETH that is in the pending withdrawal queue.
