DCG said it fully paid off its Genesis loans, but its creditors beg to differ 

DCG said on Friday it had completed its repayment of short-term loan obligations to Genesis, but a new court filing Monday claims otherwise

article-image

24K-Production/Shutterstock modified by Blockworks

share

Digital Currency Group has not fulfilled its repayment requirements to its bankrupt subsidiary Genesis Global, the ad hoc group of lenders alleged Monday. 

DCG entities ​​”continue to owe the Debtors’ estates and their creditors significant sums of USD and BTC,” the group said in a Monday court filing. 

The notice comes days after DCG took to X to announce it had fully paid off its short-term loans from Genesis.

Genesis and other debtors claim DCG still owes an undetermined amount of bitcoin as well as $26 million in interest and late fees — as stipulated by its repayment agreement and master loan agreements. 

Read more: DCG repays all short-term loans to Genesis

DCG, the group says, transferred around $189 million in US dollars in addition to “the relinquishment of certain ETHE shares and illiquid ETCG shares…purportedly in satisfaction of the DCG entities’ BTC obligations.” 

DCG’s shares of ETCG, the Grayscale Ethereum Classic Trust, and ETHE, the Grayscale Ethereum Trust, had been held as collateral for its loans from Genesis, the filing added. But according to its partial repayment agreement, drafted in September, DCG is only allowed to settle its USD and BTC requirements in those currencies, not other assets. 

Genesis cannot determine how much of DCG’s bitcoin obligations remain outstanding until it sells the ETHE and ETCG and purchases bitcoin with the proceeds, costs for which would be passed on to DCG, the filing states. 

Genesis in September sued its parent company in an effort to recoup an outstanding loan balance of more than $700 million (as of Monday) in cash and cryptocurrencies that matured in May 2023. The September court filings show that DCG owed more than $1.7 billion to Genesis and other creditors. 

Genesis claimed that DCG had an outstanding balance of 4,550 BTC, worth about $214 million as of Monday, and 14,048 bitcoin cash, worth about $3.5 million as of Monday, plus an additional 70 bitcoin in late fees. 

DCG did not immediately respond to Blockworks’ request for comment.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

🚀 Build What’s Next — Permissionless IV Hackathon Join us June 22–23 in Brooklyn for the Permissionless IV Hackathon — a 36-hour sprint hosted by Cracked Labs and Blockworks where top builders turn ideas into real products. Come to launch, not just […]

recent research

Research Report Templates (10).png

Research

Kamino has evolved into a full-stack asset scaling suite with V2: unlocking new markets, improving capital efficiency, and catering to various risk profiles. We believe it is best positioned to become the credit backbone of Solana as the ecosystem matures. Simply put, KMNO remains our highest-conviction bet in the Solana ecosystem. This report lays out our thesis.

article-image

Bybit’s Byreal, Binance Alpha and Coinbase’s DEX integrations

article-image

This isn’t the worst hack to ever hit Mt. Gox, but it could be the most entertaining

article-image

Crossover’s CEO discusses institutional interest and how over-the-counter (OTC) trading has picked up in crypto

article-image

Sponsored

This collaboration signifies a major leap forward in expanding the reach and utility of Web3 gaming within the vibrant Asian market

article-image

Asymmetric information is threatening crypto the same way it once threatened equities. Disclosure might be the fix.

article-image

Rate cuts drift into Q4 limbo as markets pretend everything’s fine