Digital Currency Group Clears Short-Term Debt of Nearly $1B
- The firm was able to repay its debtors almost $1 billion in the last 18 months.
- Its only outstanding obligation is a $1.1 billion promissory note due to Genesiss bankruptcy.
Blockchain investment behemoth Digital Currency Group (DCG) has paid off all of its short-term debts as of June. This is according to a quarterly shareholder letter the business sent out this week. Thanks in large part to a stellar performance during the first half of the year, the firm was able to repay its debtors almost $1 billion in the last 18 months.
Due to its crypto-lending business Genesiss bankruptcy, its only outstanding obligation is a $1.1 billion promissory note. In 2022, when the crypto exchange FTX and hedge fund Three Arrows Capital went down, DCG and its affiliate Genesis were both caught up in the market contagion.
Battling Through Tough Times
When the trading empire of Su Zhu and Kyle Davies failed, Genesis lost a few billion dollars worth of assets that 3AC had borrowed from them. By providing the $1.1 billion promissory note and a cash loan, DCG ensured its subsidiary could continue operations.
Genesis was compelled to shut off withdrawals and declare bankruptcy in November. After the fall of FTX and sister business Alameda Research.
Gemini, Genesis, and DCG are three cryptocurrency businesses that were hit with a massive lawsuit by Attorney General Letitia James in October 2023. The firms are now contesting the allegations that they lied to investors. May saw the approval of a $2 billion settlement between Genesis and the NYAGs office by a bankruptcy court.
According to the shareholder letter, since August when payments started rolling out, Genesis and DCG have paid back most of Genesis creditors. This includes cryptocurrency exchange Gemini, which had loaned Genesis client deposits from its Earn program.
Highlighted Crypto News Today:
Hong Kong Spot Bitcoin ETFs Reach $269M AUM Amid Slow Inflows
Read more: https://thenewscrypto.com/digital-currency-group-clears-short-term-debt-of-nearly-1b/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
