Last Updated on May 22, 2023 by Bitfinsider

According to a May 19 update to clients issued by cryptocurrency exchange Gemini, Digital Currency Group failed to make a $630 million payment to its subsidiary Genesis Global Capital.

Gemini, a creditor of Barry Silbert’s DCG’s Genesis, stated it is now working with Genesis and other creditor organizations to provide forbearance to DCG in order to avert a default.

DCG, one of the victims of the 2022 crypto credit crisis, has been in talks with creditors of Genesis Capital, which filed for bankruptcy protection in January. Gemini, which lent Genesis customer funds as part of its retail high-yield Earn program, has vowed to sue Silbert and DCG.

Genesis owes Gemini a total of $900 million. Gemini warned DCG in early May that it faced default if a $630 million debt payment to Genesis’ bankruptcy estate was not completed.

According to Gemini’s most recent report, if an agreement with DCG cannot be struck, the firm will engage with other creditors “to suggest terms for an amended plan of reorganization that could be advanced without DCG’s consensual participation.”

On May 19, Gemini filed a move with the bankruptcy court to propose such a restructuring plan, which would not require DCG’s permission.

According to DCG’s most recent statement on May 9, the company is in talks with “capital providers for growth capital and to refinance its outstanding inter company obligations with Genesis.”

Furthermore, Gemini has been compiling a claim for today’s filing that seeks the return of $1.1 billion in cryptocurrency for its 232,000 Earn users, according to the update.