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Digital Currency Group, the owner of the now-bankrupt crypto lender Genesis, faced criticism on Wednesday for allegedly borrowing a substantial amount of bitcoin and failing to repay it.

Genesis Global Capital is taking legal action against Digital Currency Group (DCG) for several unpaid loans totaling hundreds of millions of dollars that were due in May.

Genesis and DCG had entered into a “master loan agreement” in 2019, according to Genesis’ lawyers, as revealed in a filing with the U.S. Bankruptcy Court in the Southern District of New York. The documents state that Genesis loaned over 18,000 bitcoin to DCG in 2022, and later that year, the debt was converted into a fixed-term loan with a maturity date of May 11.

However, the loan matured on May 11, 2023, and remained unpaid, as per the filing.

In a separate court filing on Wednesday, attorneys representing Genesis disclosed that the crypto lender and DCG had entered into an “amended and restated master loan agreement” in November 2022.

A spokesperson for DCG mentioned in an emailed statement that Genesis had agreed to suspend the turnover action to facilitate the documentation of a preliminary agreement reached with Genesis, the UCC (Unsecured Creditors Committee), and DCG. The spokesperson further stated that they are currently in the process of documenting a forbearance agreement, which will be filed with the court soon. Once this is done, the distribution of funds will commence, and the path toward significant recovery for Genesis creditors will continue.

Genesis and DCG Face Legal Battle Over Unpaid Bitcoin Loans

Genesis Global Holdco faced significant financial challenges after the collapses of the crypto hedge fund Three Arrows Capital and the FTX exchange last year. As a result, it filed for bankruptcy protection in January, owing substantial debts to its creditors.

Following this, DCG and Genesis Global became embroiled in a legal dispute with the Gemini exchange. Gemini sued DCG and its CEO Barry Silbert in July, alleging that Silbert was responsible for orchestrating a fraudulent scheme against creditors on behalf of DCG and Genesis.

In July, Gemini co-founder Cameron Winklevoss issued an ultimatum to Silbert, demanding the immediate payment of $640 million owed to Gemini’s Earn clients or the threat of a lawsuit.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

#Blockchain #Bitcoin #CryptoNews #cryptomarket #Genesis

Welcome to this week's crypto recap! It's been an eventful week in the global crypto market, with a series of interesting updates from multiple high-profile lawsuits.
It's good news for #Bitcoin enthusiasts, as the coin saw a surge in price, hitting over $39,000 - a level last seen in May 2022. The price hike was fueled by the Federal Reserve's latest commentary on inflation, which created excitement in the market. 
Additionally, MicroStrategy's announcement of a whopping $600 million $BTC purchase further supported the surge. This purchase comes ahead of the potential approval of all Bitcoin exchange-traded fund (ETF) applications by the U.S. Securities and Exchange Commission.
What are the top news stories you might have missed this week?
Let's dive in!
For transparent and decentralized crypto trading and to list your crypto token for free, don’t forget to visit our website and follow Melega Finance (@melegadex) on Twitter for more on all things cryptocurrency.
TOP CRYPTO NEWS RECAP (NOVEMBER 19–NOVEMBER 25, 2023)
●      SEC Accelerates Public Input on Crypto ETFs, Fuels Speculation for January Approvals
●      #Celsius Enables Withdrawals for Eligible Crypto Holders Amid Bankruptcy Proceedings
●      KyberSwap Hacker Demands Control Over Kyber Company in Return for Stolen Funds
●      #FTX Granted Approval to Sell $873M of Assets for Creditor Repayment
●      #Genesis and DCG Reach Repayment Agreement, Potentially Ending $620M Lawsuit
●      #CZBinance Steps Down as Binance US Chairman; Investors Sue Ronaldo Over Binance Ties
SEC Accelerates Public Input on Crypto ETFs, Fuels Speculation for January Approvals
The Gary Gensler-led U.S. Securities and Exchange Commission (SEC) has opened a public comment period for Franklin Templeton and Hashdex's Bitcoin ETFs, hinting at a potential accelerated approval process by January 10, 2024. This unexpected development follows the SEC's initiation of a 21-day comment period for Fidelity's Ethereum ETF proposal, reinforcing speculation of a broader regulatory shift towards approving both Bitcoin and Ethereum ETFs simultaneously. 
As public interest grows, the SEC seeks feedback on market manipulation concerns, pricing mechanisms, and liquidity issues on associated exchanges. Bitcoin ($BTC ) and Ethereum ($ETH ) respond positively, hitting new 2023 highs.
Celsius Enables Withdrawals for Eligible Crypto Holders Amid Bankruptcy Proceedings
Celsius, the bankrupt cryptocurrency lending platform, has announced that eligible participants can now withdraw 72.5% of their cryptocurrency holdings, minus transaction fees. This development comes as a crucial step forward for the company and its clients, who have been facing financial instability and legal issues. 
The withdrawals are available to participants falling under specific custody claims, with a withdrawal deadline set for February 28, 2024. The platform has been navigating bankruptcy proceedings and legal challenges while also planning to transition its core business to Bitcoin mining.
KyberSwap Hacker Demands Control Over Kyber Company in Return for Stolen Funds
The hacker responsible for the $46 million KyberSwap exploit has outlined their conditions for returning the stolen funds. The demands, as seen in an on-chain message on Etherscan, include complete executive control over the Kyber company, ownership of its governance mechanism, and all company assets. 
In exchange, the hacker promises to buy out executives, double employee salaries, and provide severance packages. Token holders and investors would also benefit from the transition. Liquidity providers would receive rebates for losses incurred. The hacker sets a deadline of December 10 for the Kyber team to meet their demands, threatening to void the treaty otherwise.
FTX Granted Approval to Sell $873M of Assets for Creditor Repayment
Bankrupt crypto exchange FTX has received court approval to sell approximately $873 million worth of trust assets. The proceeds will be used to repay creditors affected by the exchange's collapse. The assets, sourced from FTX's stakes in trusts issued by Grayscale Investments and Bitwise, include the Grayscale Bitcoin Trust (GBTC) and the Grayscale Ethereum Trust (ETHE). 
FTX's administrators have been working to recover assets since the collapse, with around $7 billion recovered so far. Meanwhile, FTX's founder, Sam Bankman-Fried, awaits sentencing after being convicted on fraud-related charges.
Genesis and DCG Reach Repayment Agreement, Potentially Ending $620M Lawsuit
Crypto lender Genesis and its parent company, Digital Currency Group (DCG), have reached a repayment agreementthat could bring an end to a $620 million lawsuit. According to the deal, #DCG will repay Genesis's outstanding $324.5 million in loans by April 2024, with Genesis able to pursue any unpaid amounts. The agreement aims to avoid the costs and resources associated with litigation. 
This development is part of Genesis's plan to repay creditors, pending a vote from creditors and a decision from Judge Sean Lean. Genesis has also filed a lawsuit against crypto exchange Gemini for nearly $670 million in transfers.
CZ Steps Down as Binance US Chairman; Ronaldo Sued Over Binance Ties
The world's leading cryptocurrency exchange, Binance, continues to struggle in the midst of legal difficulties. Its former CEO, Changpeng Zhao (CZ), has pleaded guilty to violating the Bank Secrecy Act. CZ, who is stepping down and facing a $150 million penalty, may not leave the United States until 2024. 
On November 28, 2023, Binance US, the American branch of the global cryptocurrency exchange, also announced that Changpeng Zhao is stepping down as chairman of the board of directors. Meanwhile, the exchange assures customers that operations will proceed as usual despite CZ's departure and legal issues.
Simultaneously, soccer star Cristiano Ronaldo faces a lawsuit for promoting Binance's NFTs, accused of involving unregistered securities.
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