DCG repays all short-term loans to Genesis

DCG has now repaid a total of more than $1 billion in debts to creditors

article-image

Adobe Stock and Genesis modified by Blockworks

share

Digital Currency Group said Friday that it has paid off its short-term loans from its bankrupt subsidiary Genesis.

The disclosure means that DCG’s total debt payoff to creditors is more than $1 billion, including almost $700 million paid to Genesis alone, the company added

Genesis in September sued its parent company in an effort to recoup an outstanding loan balance of more than $610 million that matured in May 2023. The September court filings show that DCG owed more than $1.7 billion to Genesis and other creditors. 

Genesis, in a separate complaint filed in September, also sought to recover 4,550 BTC, worth about $199 million as of Friday. 

The crypto lender came to an agreement with DCG in November, under which the parent company agreed to pay $200 million over the following “few weeks,” a lawyer for Genesis said. 

The remaining loan balance is due to Genesis by April 1, the plan, which was signed off in federal bankruptcy court, stipulates. 

The payment follows news that DCG won’t make any changes in its ownership until Genesis’ bankruptcy proceedings conclude. DCG’s stake in Genesis must stay above 80% until the lender’s Chapter 11 plan is approved or it is converted into a Chapter 7 proceeding. 

The ruling allows Genesis to remain protected under DCG’s tax consolidated group, which could protect the potential value of the federal net operating loss carryforwards (NOLs), a tax benefit that would allow Genesis to deduct losses from future profits. Genesis stands to retain benefits on $700 million in NOLs. 

“With this milestone behind us, we’re looking forward to the next chapter of DCG and the future growth of our industry,” DCG said in a statement Friday. “And as always, we will continue to honor our financial commitments.”


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.

recent research

Unlocked by Template (11).png

Research

Union’s technical design brings measured improvements to crosschain interoperability. By combining a consensus-verified hub with novel constructs like state lenses and ZK proofs for client updates, Union achieves an interoperability protocol that is highly performant, trust-minimized, and scalable.

article-image

Crypto finds fundamentals, Chanos books profits and prediction markets make trouble

article-image

The token has crashed over 65% and been marked as dangerous due to its contract’s permissions

article-image

FOMC July minutes may hold the key to Powell’s speech tomorrow

article-image

Singapore’s largest bank is issuing crypto-linked structured notes on Ethereum, but the tokens will remain permissioned

article-image

Jupiter borrows Fluid’s innovative risk engine