Digital Currency Group (DCG), led by Barry Silbert, announced full repayment to bankrupt subsidiary Genesis, but cryptocurrency veterans claim deception.

Digital Currency Group (DCG), led by Barry Silbert, recently announced the full repayment of a loan from its defunct subsidiary Genesis. However, an article published on X by cryptocurrency veteran Vijay Boyapati suggests a different story. The author of the book "The Bullish Case for Bitcoin" claims that DCG and Silbert committed deception.

Boyapati said that back in June 2022, CEO Michael Moro reportedly worked with DCG and Silbert to provide funds to Genesis to cover up losses related to Genesis' bankruptcy.

He claimed that DCG purportedly accomplished this through "promissory notes," which Genesis treated as liquid assets despite their long 10-year redemption period and below-market interest rates.

Cryptocurrency expert claims to have settled with GBTC

The post also claims that during this period, DCG withdrew a massive loan of 18,697 Bitcoin from Genesis, knowing that Genesis was insolvent. Boyapati pointed out that it was this particular loan that DCG and Silbert recently claimed to have repaid.

Boyapati claims that during the FTX crash in November 2022, DCG claimed to have repaid some of its Bitcoin loans to Genesis. However, he claimed that the money was paid not in BTC but in discounted GBTC shares. He hinted that Genesis accepted partial repayment despite claims from creditors against BTC.

Boyapati added, “Genesis did not use an easy way to sell GBTC and convert it to BTC because GBTC is a product of its sister company Grayscale and regulations prohibit the company from selling more than a small percentage of the total funds each quarter. "

The creditor has filed a lawsuit with the court

Among the accusations were reports that a special group of lenders accused DCG of failing to meet its repayment obligations to Genesis Global. DCG still owes significant amounts of U.S. dollars and Bitcoin, according to reports Monday citing court documents.

On Friday, DCG announced it had settled $1 billion in debt in bankruptcy proceedings, including $700 million owed to Genesis. #DCG #Genesis债权人