TechFlow reported that Genesis Global Capital has filed a lawsuit against Digital Currency Group (DCG) and Digital Currency Group International (DCGI), seeking repayment of multiple loans totaling over $600 million in principal.
Both Genesis and DCGI are subsidiaries of DCG. In court filings, Genesis alleged that DCG and DCGI "wrongfully possessed property belonging to the bankruptcy estate of Genesis Global Capital." As of Wednesday local time, DCG owed Genesis $500 million, while DCGI owed 4,550.5 BTC (worth approximately $117 million at the time of reporting). Genesis is also seeking late fees and accrued interest, stating these funds represent "property that the debtor could use in its ongoing bankruptcy proceedings."
DCG borrowed up to $500 million from Genesis through four separate loans in 2022, while DCGI borrowed 18,697.7 BTC in 2019. All loans matured and became due in May this year. DCG had reportedly sought to convert these loans into "open loans" and sent notice to Genesis on May 9. However, Genesis rejected the conversion and intends to preserve its right to recover the outstanding amounts.
