According to CoinDesk, Genesis Global Capital has filed a lawsuit against Digital Currency Group (DCG) and Digital Currency Group International (DCGI), seeking the repayment of multiple loans with a principal amount of over $600 million. The filings on Thursday allege that DCG borrowed up to $500 million across four different loans from Genesis in 2022, while DCGI borrowed 18,697.7 BTC in 2019. DCG and Genesis entered into master loan agreements on Nov. 10 last year, and each of these 2022 loans had an extended or normal maturity date of May 9 or 10, 2023. DCGI entered into a master loan agreement with Genesis on June 21, 2019, with a similar 2023 extended maturity date. Genesis and DCGI are both subsidiaries of DCG, which is also CoinDesk's parent company.
Genesis, which filed for bankruptcy in January this year, alleged in its Wednesday filings that DCG and DCGI are "wrongfully in possession of property" belonging to Genesis Global Capital's bankruptcy estate. Each of these loans matured and are payable as of this past May, the filings said, but DCG appeared to want to convert the loans into "Open Loans," sending notifications to Genesis on May 9. However, the onetime crypto lender alleges, Genesis did not agree to this conversion, and reserved its rights to be repaid.
As of Wednesday, DCG owed Genesis $500 million, while DCGI owed 4,550.5 BTC (worth about $117 million as of press time), the two filings said. Genesis is also looking for late fees and accrued interest, saying these funds are "property that the debtor could use" in its ongoing bankruptcy case. A DCG spokesperson did not immediately return a request for comment.
