Genesis reaches a $200 million repayment agreement with DCG, ending approximately $620 million lawsuit

ChainCatcher news, according to Bloomberg, Digital Currency Group (DCG) has reached a new repayment agreement with its bankrupt subsidiary Genesis, which will end Genesis's lawsuit seeking approximately $620 million from DCG.

Genesis's lawyer Sean O'Neal stated at the hearing that the new agreement stipulates that DCG will pay Genesis about $200 million in the coming weeks and requires DCG to complete the outstanding payments by April 2024. If DCG defaults, Genesis can attempt to collect all outstanding amounts. The repayment funds from DCG will become part of the compensation plan proposed by Genesis to its creditors, which will be submitted for creditor voting. Genesis stated that this agreement will avoid months of costly litigation with its parent company.

Lawyer Sean O'Neal indicated that the agreement still does not resolve other disputes related to DCG in Genesis's bankruptcy resolution.

Previously, Genesis filed a lawsuit in September seeking repayment of unpaid loans from its parent company DCG, demanding repayment of multiple loans with principal amounts exceeding $600 million. According to court documents, DCG has been making payments to Genesis since the lawsuit was filed, but as of November 28, DCG still owes its subsidiary $324.5 million.