Digital Currency Group still owes Bitcoin, USD to Genesis, filing suggests

An ad hoc personnel of lenders linked with bankrupt Genesis alleged that Digital Currency Workforce has but to fulfill its loan compensation requirements with the defunct lender due to it quiet owes immense amounts in every Bitcoin and US Greenbacks, essentially essentially based on a Jan. 8 courtroom filing.

On Jan. 5, DCG publicly claimed it had disbursed over $1 billion to collectors interior a year, including $700 million directed to Genesis to quilt all quick responsibilities.

Why DCG is quiet allegedly indebted to Genesis

The ad hoc personnel disputed the crypto asset management firm’s claims, asserting that “DCG Entities have not ecstatic their responsibilities…and continue to owe the Debtors’ estates and their collectors considerable sums of USD and BTC.”

The Genesis lenders’ personnel claimed that DCG had transferred finest $189 million in money and surrendered portions of its holdings in illiquid Grayscale Ethereum Classic Have faith (ETCG) and Grayscale Ethereum Have faith (ETHE) “purportedly in pride of the DCG entities’ BTC responsibilities.”

Alternatively, the personnel, citing the partial compensation settlement between every firms, pointed out that DCG can finest fulfill its USD and BTC commitments exclusively by procedure of these currencies, with the exception of assorted sources.

Therefore, DCG’s prominent BTC responsibilities remain uncertain till Genesis liquidates the ETCG and ETHE shares to build up BTC.

Furthermore, the lenders smartly-known that DCG entities are field to an additional $26 million in hobby and wearisome charges for the USD recount of the loans, as stipulated within the loan agreements between the two parties.

“The DCG Entities remain obligated to the Debtors for in far extra than $26,000,000.00 for hobby and wearisome charges owed on tale of the USD Portion of DCG’s responsibilities pursuant to the respective master loan agreements giving upward thrust to such responsibilities,” the ad hoc personnel wrote.

In September, Genesis initiated honest circulation in opposition to its dad or mum firm to reclaim an prominent loan price over $700 million, consisting of cash and cryptocurrencies due for compensation by Could presumably maybe 2023. The courtroom documents additional revealed that DCG owed Genesis and a quantity of assorted collectors extra than $1.7 billion.