Genesis sues DCG for $600M loan repayment.

Yamini003

Cryptocurrency lending company Genesis, which declared bankruptcy earlier this year, has officially filed a lawsuit against its parent company, ""Digital Currency Group (DCG),"" today (September 7th). Genesis is demanding that DCG repay loans totaling over $600 million.

At the same time, another subsidiary of DCG, ""Digital Currency Group International (DCGI),"" has also been named as a defendant. According to documents submitted by Genesis, DCG and DCGI ""wrongfully possessed property belonging to Genesis' bankruptcy estate.""

The documents reveal that DCG had provided loans to Genesis four times in 2022, with a total loan amount of $500 million. DCGI, on the other hand, borrowed 18,697.7 bitcoins (valued at approximately $117 million) from Genesis in 2019. It is reported that these loans had matured in May of this year but remained unpaid to date. Earlier, DCG appeared to have sought to convert these loans into ""public loans,"" but Genesis wanted to retain its right to recover the debts and therefore rejected this proposal.

In this lawsuit, Genesis is also seeking late fees and accrued interest from the defendants, stating that these funds are ""property that the debtors can use in bankruptcy cases.""

At the same time, DCG and its founder, Barry Silbert, are facing a lawsuit from the cryptocurrency billionaire Winklevoss twins. The dispute between the two parties began when Genesis, affected by the collapse of FTX, went bankrupt. During this process, Genesis froze funds, causing up to $900 million of customer funds from Gemini's lending product, Gemini Earn, to be stuck and unable to be accessed.

Yamini003

Once again, it's an account freeze.

Kitu11

Encountering account freezes is always very frustrating.