#CryptoLending #Cryptocurrency #DigitalCurrencyGroup #Genesis #CryptoLawsuit #Bankruptcy #DebtRepayment #BlockchainFinance
Genesis, a cryptocurrency lender currently under bankruptcy, and its parent organization, the Digital Currency Group (DCG), have reached an agreement that could potentially put an end to an ongoing litigation over a $620 million repayment. The announcement was made in a filing to a New York Bankruptcy Court on November 28. As per the agreement, the DCG has pledged to set right its outstanding $324.5 million in loans by April of the following year. Following this, Genesis has the right to follow up on any unpaid amounts.
The agreement, put forth to stop a lawsuit filed by Genesis against DCG in September, is part of Genesis’ efforts to repay creditors. It was aiming to recuperate the firm’s late loan repayments which were roughly around $620 million. Since the case was put forward, DCG has made some repayments. This agreement is anticipated to give Genesis “immediate significant and near-term benefits” and help avoid additional “risks, costs, and resource consumption that would be needed by litigation.” The creditors will cast their votes regarding the agreement before it is submitted to bankruptcy judge Sean Lean for a final decision. Genesis is also involved in a lawsuit against Gemini, a well-known cryptocurrency exchange, with the aim of recouping approximately $670 million in transfers.
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