DCG Missed $630M Genesis Debt Payment: Gemini

Genesis, Gemini and other stakeholders are weighing whether to allow DCG more time to stave off a potential default

article-image

Digital Currency Group founder and CEO Barry Silbert | Exclusive Axel Rangel art modified by Blockworks

share

Digital Currency Group (DCG), the parent company of crypto lender Genesis, fell short in settling its $630 million debt obligation to Gemini last week, according to a recent update.

It was previously anticipated that DCG could default on the loan, now managed by Genesis’ bankruptcy estate. 

Gemini initially awarded DCG 30 days to come up with the funds as part of a mediation process. The Winklevoss-led crypto exchange had claimed Genesis was responsible for the collapse of its own interest-bearing lending product, Gemini Earn.

Gemini shuttered Earn in January after Genesis allegedly failed to return more than $900 million in assets owed to exchange.

DCG is the New York venture capital firm operated by founder Barry Silbert. It has backed hundreds of industry-related projects at the seed stage over the years. 

Genesis, which filed for bankruptcy in January, was once one of DCG’s primary pillars alongside investment unit Grayscale, bitcoin miner Foundry, media outlet CoinDesk and crypto exchange Luno. Layoffs have struck a number of DCG companies over the past year, as well as DCG itself.

Gemini says it doesn’t need DCG to restructure Genesis

In light of DCG’s missed payment, Genesis, the Unsecured Creditors Committee, the Ad Hoc Group of Creditors and Gemini are weighing whether to allow DCG more time to stave off a potential outright default. 

Their decision will hinge on DCG’s perceived commitment to fair and open negotiations, Gemini said in its update. Blockworks has reached out to DCG for comment.

The firm warned that if a deal to recover the $630 million from DCG can’t be reached, then Gemini and other mentioned parties would work on a Genesis reorganization plan that could advance even without DCG’s participation.

Gemini noted Genesis had filed a motion on Friday to extend its deadline to exclusively propose a plan. “This would be a plan that would have Gemini’s input if not outright support,” Gemini said. 

Meanwhile, Gemini said it expects to file a master claim on Monday, aiming to recover more than $1.1 billion crypto belonging to 230,000 Earn users from Genesis.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png

Research

Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.

/

article-image

Though the opposing flow trend is likely to slow over time, industry watchers note, bitcoin fund assets could one day eclipse the $90 billion gold ETF space

article-image

Celestia had the first mover advantage. EigenDA has staked ether. What sets Avail apart?

article-image

Bitcoin moved 1% higher Monday morning in New York, Matrixport analysts say $62,000 could happen next month

article-image

It’s hard to believe right now that crypto — even with all of its flexibility and massive capabilities — could ever be like cash on the internet

article-image

Michael Saylor announced Monday morning that MicroStrategy bought 3k more bitcoin after the X account was compromised over the weekend

article-image

Plus, Pudgy Penguins grows its brand and a group of Autoglyphs sell for $14.5 million