Genesis Settles $620M Lawsuit with DCG, But the Conflict Isn’t Over Yet

The crypto world continues to experience new daily developments – exciting ones! genesis genesis - Advisory , a bankrupt crypto lender under Digital Currency Group (DCG), struck a significant deal aiming to settle a lawsuit seeking $620 million in repayments from DCG.

According to a November 28 court filing, DCG agreed to repay $324.5 million by April 2024, resolving part of the dispute. This agreement offers Genesis immediate benefits, avoiding prolonged litigation’s hefty costs and distractions. 

Double Trouble: Genesis vs. Gemini

This agreement is a positive step, and Genesis reveals a broader strategy. Pending crucial votes and approval from Judge Sean Lean, Genesis aims to shrink a massive claim against Three Arrows Capital from $1 billion to a more manageable $33 million. Genesis is playing its cards strategically in the unpredictable crypto world.

But the drama doesn’t end there. Genesis has launched another legal challenge, this time against Gemini, a major crypto exchange, seeking to recover a hefty $670 million. This legal duel happens alongside an ongoing Securities and Exchange Commission lawsuit accusing both Genesis and Gemini of selling unregistered securities. Adding to the tension, New York authorities filed a separate lawsuit alleging investor fraud against Genesis, Gemini, and DCG.

Also Read: Three Arrows Capital to Receive $33 Million From Genesis; Court Approves

Understanding the Genesis Saga

Genesis faced financial trouble since January, triggered by a withdrawal suspension in November 2022. The recent agreement with DCG is a pivotal moment, offering hope for resolution as they navigate a complex web of lawsuits and financial restructuring. The fate of this crypto saga now rests on creditor votes, determining the outcome for Genesis and DCG.

Grim Allegations

However, a shadow looms as Genesis, its former CEO Soichiro Moro, DCG, and DCG’s CEO Barry Silbert face allegations of defrauding investors. The claim suggests an attempt to conceal losses exceeding $1.1 billion, leaving investors to bear the brunt. The New York Attorney General’s lawsuit alleges intentional deception by Genesis at the behest of its parent company, DCG.

What do you think the future holds for Genesis and DCG? Let us know your predictions.