Last Updated on September 7, 2023 by Bitfinsider
Genesis Global Capital is suing Digital Currency Group for hundreds of millions of dollars in outstanding loans due in May.
According to a filing in the United States Bankruptcy Court for the Southern District of New York, DCG and Genesis engaged into a “master loan agreement” in 2019. According to the records, Genesis loaned approximately 18,000 bitcoin to DCG in 2022 and later changed the debt into a fixed-term loan with a May 11 maturity date.
“The DCGI Loan matured on May 11, 2023, and was not repaid,” the complaint said.
Lawyers for Genesis said in a separate court statement filed on Wednesday that the crypto lender and DCG engaged into a “amended and restated master loan agreement” in November 2022.
“Genesis has agreed to stay the turnover action so that we can move forward with documenting the deal in principle that was reached with Genesis, the UCC, and DCG,” a DCG representative stated in an email. “We are preparing a forbearance agreement, which we hope to file with the court soon.” At that point, we will begin disbursing monies and continue on the path to significant recovery for Genesis creditors.”
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