DCG Risks Defaulting on $630M in Debt Obligations, Gemini Says

Genesis has initiated a 30-day mediation process with DCG, UCC, Creditor Committee and Gemini to reach a final resolution as soon as possible

article-image

rafapress/Shutterstock modified by Blockworks

share

Digital Currency Group risks defaulting on its $630 million debt obligations to the Genesis bankruptcy estate, according to a statement released by Gemini on Friday.

Genesis said it has initiated a 30-day mediation process with Digital Currency Group (DCG), the Unsecured Creditors Committee (UCC), the Creditor Committee and Gemini to reach a final resolution as soon as possible.

The mediation is focused on DCG’s economic contribution to the bankruptcy estate for the “benefit of all creditors,” including Earn users — the exchange’s former lending program that halted operations in November.

Earn was eventually forced to close following DCG subsidiary Genesis Global Capital’s alleged failure to return more than $900 million in assets owed to it.

The proposed mediation provides for two meetings before May 8, an important date as DCG owes the Genesis bankruptcy estate $630 million on May 9 through to May 11.

If DCG is unable to pay or restructure its debt, the company risks defaulting on its obligations, Gemini said in its statement. Blockworks attempted to contact both DCG and Gemini but did not receive a reply by time of publication.

Gemini has also expressed its frustration with the pace of progress among the parties and the need for urgency, stating that they support the mediation process and look forward to working with the parties to bring this to a conclusion.

Both Gemini head Cameron Winklevoss and DCG boss Barry Silbert have engaged in a tit-for-tat since the year began.

According to Winklevoss, DCG owes Genesis $1.675 billion, which Silbert has allegedly been using to fund share buybacks, venture investments and Grayscale NAV trades that have significantly increased the Trust’s fee-generating assets under management.

Though Silbert has publicly denied those claims, stating his company has “never missed an interest payment to Genesis and is current on all loans outstanding.”

The next status conference with the court is scheduled for May 4 which will likely review the progress of the bankruptcy proceedings and hear updates from both parties.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

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

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

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.

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 (1).jpg

Research

As AI supercharges surveillance, privacy becomes a prerequisite and the winning stack will combine confidentiality with selective disclosure. Zcash’s Tachyon, composable standards on Ethereum/Solana, and compliance-aware pools aim to make private rails the new norm.

article-image

375ai will hold TGE at the end of the month, CEO Harry Dewhirst told Blockworks

article-image

Block’s subsidiary adds direct Bitcoin integration and AI-powered ordering tools for small businesses seeking streamlined transactions

by Blockworks /
article-image

The deal integrates Dinero’s staking suite into Plume’s real-world asset platform as it gains SEC transfer agent status

by Blockworks /
article-image

The state’s decision opens staking access to New Yorkers, signaling a regulatory shift toward broader crypto participation

by Blockworks /
article-image

The startup says it aims to rival Stripe and Worldpay by using stablecoins to speed merchant settlements from days to seconds

by Blockworks /
article-image

“S&P 500” for crypto comes as segment gains “established role in global markets,” S&P exec says