DCG Missed Promised $630 Million Loan Repayment, Says Gemini

The Digital Currency Group (DCG) has been dealing with financial turmoil for several months now. Mostly, its financial problems are due to the liquidity crunch faced by one of its owned companies, Genesis.

Internal and external disputes

Although DCG’s financial woes boil down primarily to Genesis’ predicament, some creditors – Gemini chief among them – believe the main culprit is DCG CEO Barry Silbert.

According to the Winklevoss twins, DCG currently owes Gemini north of $1.6 billion, an issue carried over to exchange users due to Gemini’s Earn’s partnership with Genesis.

Silbert previously denied the claim, stating that DCG had made all payments due, with the next loan due in May.

DCG did not borrow $1.675 billion from Genesis. DCG has never missed an interest payment for Genesis and is applicable to all outstanding loans; The next loan due date is May 2023. DCG delivered a proposal to Genesis and your advisors on December 29 and has not received a response.”

However, the loan maturity date has been reached. According to Gemini, no payment has been made for Genesis.

Creditors are looking for a solution

Late last week, the roughly $630 million loan from Genesis to DCG was not repaid. In order to avoid default – which could lead to DCG’s bankruptcy – Gemini, Genesis and the DCG Creditors Committee are Taking into account the Loan patience to prevent the problem from getting out of control.

Any deal with DCG will depend entirely on whether the debtor intends to engage in good faith, according to the statement published by Gemini.

If a deal is impossible to reach, Genesis will demand a revised reorganization plan that would give it a greater chance of paying off creditors. Gemini will be consulted on any proposal, although their approval is not guaranteed.

In the meantime, Gemini will file a Gemini Master suit formally demanding immediate return of $1.1 billion in digital assets belonging to its users that Genesis was in custody as part of the Earn partnership between the two companies.

This allegation would be a separate proceeding from the case against DCG and its CEO, in particular, whom the Winklevoss twins have repeatedly accused of wrongdoing.