Genesis sues parent company DCG, other affiliate for $600M loans, then stays action
DCG borrowed $500,000 from its subsidiary last year, and DCG Investments borrowed over 18,000 BTC. Both have allegedly defaulted.
DCG borrowed $500,000 from its subsidiary last year, and DCG Investments borrowed over 18,000 BTC. Both have allegedly defaulted.
The company, an affiliate of Barry Silbert’s Digital Currency Group, has been providing crypto spot trading since 2013. Its closure is “for business reasons.”
Estimates of staffers facing the axe range from 45% (20 people) to 16%. A companywide meeting is reportedly scheduled for Aug. 14.
Gemini’s complaint filed in July alleged DCG and Barry Silbert had made "false, misleading, and incomplete representations and omissions" related to Genesis and the Earn program.
Digital Currency Group (DCG) is reportedly under investigation in New York for financial transactions involving its subsidiary, Genesis Global Capital.
The FTX debtors alleged that the claim was filed "without any advance notice," and were not invited to participate in the mediation.
The settlement plan proposed in February would give Genesis creditors 80% recovery of funds but many raised demands, leading to the mediation.
Under the initial settlement plan, Genesis creditors were expected to receive 80% recovery of funds lost due to the bankruptcy.
Negative headlines surrounding Silvergate dragged Bitcoin's price below $20,000. Meanwhile, bankrupt Alameda is planning to sue Grayscale and its parent company DCG.
The crypto conglomerate reported that falling crypto prices and the fallout from Three Arrows Capital’s loan default to Genesis affected its results.