Cryptocurrency lender Genesis Global Capital (GGC) has filed two lawsuits against its parent company Digital Currency Group (DCG) and an affiliate, DCG International Investments (DCIG). The lawsuits seek the repayment of overdue loans totaling over $600 million.
GGC loaned DCIG over 18,000 BTC, which was partially repaid but still has an outstanding balance. GGC is demanding repayment of the loan with interest and late fees. In addition, GGC made four loans to DCG worth $500 million, which matured in May 2023.
DCG claims it can convert these loans to open loans under a prior agreement, but GGC disagrees. The parties have undergone mediation and are continuing negotiations. However, a DCG spokesperson has stated that Genesis has agreed to stay the action, allowing for the documentation of a deal reached with Genesis and expect to file a forbearance agreement.
Genesis Global Capital declared bankruptcy earlier this year and owes $3.5 billion to its top 50 creditors. DCG has reached an agreement in principle with unsecured creditors for the return of 70-90% of the owed amount.
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