According to Gemini, DCG missed the promised repayment of a loan of $ 630 million

According to Gemini, DCG missed the promised repayment of a loan of $ 630 million

The Digital Currency Group (DCG) has been struggling with financial turbulence for several months. The financial problems are largely due to the liquidity crisis, with which one of its own companies, Genesis, is faced.

internal and external disputes

Although the financial problems of the DCG group are primarily due to the predicament of Genesis, some creditors-especially Gemini-believe that the main culprit of the CEO of the DCG group, Barry Silbert, is.

According to the Winklevoss twins, DCG Gemini currently owes more than $ 1.6 billion, a problem that has been transferred to the users of the stock exchange due to the Earn partnership of Gemini.

Silbert rejected the claim before the reason that DCG had made all outstanding payments and the next loan term was due in May.

"DCG did not borrow $ 1.675 billion from Genesis. DCG has never missed an interest payment on Genesis and is up to date with all outstanding loans; the next loan duration is May 2023. DCG has submitted Genesis and its advisors on December 29th."

However, the loan term has now been reached. According to Gemini, no payment of genesis was made.

creditors are looking for a solution

At the end of last week, the Loan of Genesis at DCG in the amount of around $ 630 million was not repaid. In order to avert a loss of payment that could drive DCG into bankruptcy, consider Gemini, Genesis and the committee of the DCG believers to define the loan to prevent the problem from getting out of control.

According to the statement published by Gemini, every agreement with DCG would completely depend on whether the debtor wants to act in good faith.

If an agreement is not possible, Genesis will propose a changed restructuring plan that would offer a greater chance of repayments to the creditors. Twins would be consulted for each proposal, but their consent is not guaranteed.

In the meantime, Gemini will submit the Gemini Master Claim and officially request the immediate return of digital assets worth $ 1.1 billion of its users, which has kept Genesis as part of the EARN partnership between the two companies.

This lawsuit is a separate procedure compared to the procedure against DCG and in particular their CEO, to which the Winklevoss twins have repeatedly accused misconduct.

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