Breaking: DCG Clears Over $1 Billion in Debt to Creditors, Including Genesis
Digital Currency Group (DCG) announced on Friday that it has successfully paid off its short-term loans from Genesis, its bankrupt subsidiary. This recent financial move marks a substantial step forward for the firm, bringing its total debt repayment to creditors to an impressive figure exceeding $1 billion.
Source: Digital Currency Group on X
Substantial Debts Settled
DCG has directed almost $700 million of this billion-dollar repayment to Genesis alone. The repayment comes after Genesis filed a lawsuit against DCG in September, seeking to recover an outstanding loan balance surpassing $610 million, due since May 2023. September court documents revealed DCG’s total debt to Genesis and other creditors amounting to over $1.7 billion. Additionally, Genesis pursued a separate legal action to reclaim around 4,550 BTC, valued at approximately $199 million.
DCG’s Agreement and Future Payments
In November, a strategic agreement was reached between DCG and Genesis. Under this arrangement, DCG committed to a $200 million payment over the subsequent weeks, as Genesis’ legal representative stated. Moreover, the remaining loan balance is scheduled for repayment to Genesis by April 1, per the plan approved in federal bankruptcy court.
Maintaining Stake and Tax Benefits
Further, the firm has agreed not to alter its ownership structure until Genesis’ bankruptcy proceedings conclude. This decision ensures that DCG’s stake in Genesis remains above 80% until the lender’s Chapter 11 plan receives approval or shifts to a Chapter 7 proceeding.
This arrangement is crucial for Genesis to stay protected under DCG’s tax consolidated group. Such protection could be instrumental in preserving the potential value of federal net operating loss carryforwards (NOLs), a tax benefit allowing Genesis to offset losses against future profits. Genesis could retain benefits on NOLs amounting to $700 million.
Moreover, DCG expressed optimism about the future, stating,
“With this milestone behind us, we’re looking forward to the next chapter of DCG and the future growth of our industry.”
The company reaffirmed its commitment to honoring financial obligations, emphasizing its dedication to responsible fiscal management and industry growth.
Read Also: Spain Advances in CBDC Exploration, Selects 3 Partners
- Breaking: Jerome Powell Signals More Rate Cuts As Labor Market Weakens, Bitcoin Rises
- DOJ Files $15B BTC Forfeiture Order, Potentially Boosting U.S. Bitcoin Reserves
- ‘Trump Insider Whale’ Increases Bitcoin Short to $485M Amid Crypto Market Crash
- Fed Governor Michelle Bowman Projects Two More Rate Cuts This Year
- Four Meme and BNB Partner on $45M ‘Rebirth Support’ Airdrop, First Batch Set to Begin
- Chainlink Price Eyes $100 as S&P Global Partnership Expands Institutional Adoption
- Solana Price Prediction as Whales Withdraw $169M from Exchanges
- Pro Says Ethereum Price is a Buy Despite Rising Liquidations and BlackRock Selling
- XRP Price Prediction as Whales Dump 2.23B Tokens — Is $2 the Next Stop?
- Trader Sees a Dogecoin Price Surge as House of Doge Sets for a NASDAQ Listing
- Will Shiba Inu Price Recover After the Crypto Crash As Burn Rate Soars 8,194%?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
