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<a href="https://bitcoinworld.co.in/dcg-announces-successful-repayment-of-genesis-loans-clears-1b-debt/" title="DCG Announces Successful Repayment of Genesis’ Loans, Clears $1B Debt" rel="noopener noreferrer nofollow"></a>
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 <li>The Digital Currency Group (DCG) has announced completing a payoff of all short-term loans from its bankrupt subsidiary Genesis, according to its official announcement on January 6th.</li>
</ul>
Over the past year, DCG has paid off more than $1 billion of debt to various creditors. The venture capital giant directed nearly $700 million towards Genesis, thereby fulfilling all its current obligations.
<h3 id="span-style-font-weight-400-dcg-completes-700-million-payoff-span">DCG Completes $700 Million Payoff</h3>
Confirming the development, Barry Silbert the founder and CEO of Digital Currency Group (DCG) <a href="https://twitter.com/BarrySilbert/status/1743391614981046606" rel="noopener noreferrer nofollow">stated</a>,
“I’m happy to share that @DCGco completed a full pay down of the money borrowed from Genesis. We have now repaid over $1 bn of debt, including this ~$700 mm, despite the headwinds faced by the industry. I’m excited about the industry’s next chapter and DCG’s leadership role in it.”
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 I’m happy to share that <a href="https://twitter.com/DCGco?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@DCGco</a> completed a full pay down of the money borrowed from Genesis
 We have now repaid over $1 bn of debt, including this ~$700 mm, despite the headwinds faced by the industry
 I'm excited about the industry's next chapter and DCG’s leadership role in it <a href="https://t.co/Jlbu3Zs7Xl" rel="noopener noreferrer nofollow">https://t.co/Jlbu3Zs7Xl</a>
 — Barry Silbert (@BarrySilbert) <a href="https://twitter.com/BarrySilbert/status/1743391614981046606?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">January 5, 2024</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
After ceasing withdrawals in November 2022, Genesis officially filed for bankruptcy in January 2023. In the following September, Genesis initiated legal action against its parent company to recover an overdue loan amount exceeding $610 million, which was set to mature in May 2023.&nbsp;
Court documents revealed that DCG had a total debt exceeding $1.7 billion owed to the lender and other creditors.
See Also: <a class="row-title" href="https://bitcoinworld.co.in/dcg-founder-barry-silbert-has-resigned-as-grayscale-chairman/" aria-label="“DCG Founder, Barry Silbert, Has Resigned As Grayscale Chairman” (Edit)" rel="noopener noreferrer nofollow">DCG Founder, Barry Silbert, Has Resigned As Grayscale Chairman</a>
In a complaint filed in the same month, Genesis also aimed to reclaim 4,550 BTC, valued at approximately $199 million.&nbsp;
However, in November, Genesis and DCG struck a repayment deal, wherein the parent company committed to paying $200 million.
Meanwhile, the outstanding loan amount must be settled with Genesis by April 2024, according to the terms outlined in the plan approved by the federal bankruptcy court.
<h3 id="span-style-font-weight-400-dcg-to-retain-stake-until-bankruptcy-resolved-span">DCG To Retain Stake Until Bankruptcy Resolved</h3>
The DCG is set to maintain its current ownership structure until the conclusion of Genesis’ bankruptcy proceedings.&nbsp;
The venture capital firm’s ownership stake in Genesis is required to remain above 80% until the lender’s Chapter 11 plan receives approval or undergoes conversion into a Chapter 7 proceeding.
This decision enables Genesis to maintain its safeguard within DCG’s tax consolidated group, preserving the potential value of federal net operating loss carryforwards (NOLs).&nbsp;
This tax advantage allows Genesis to offset losses against future profits, potentially preserving benefits on $700 million in NOLs.
The post <a href="https://bitcoinworld.co.in/dcg-announces-successful-repayment-of-genesis-loans-clears-1b-debt/" rel="noopener noreferrer nofollow">DCG Announces Successful Repayment of Genesis’ Loans, Clears $1B Debt</a> appeared first on <a href="https://bitcoinworld.co.in" rel="noopener noreferrer nofollow">BitcoinWorld</a>.

DCG Announces Successful Repayment of Genesis’ Loans, Clears $1B Debt

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