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The Digital Currency Group claims it has nothing to do with Genesis’ decision to file for bankruptcy.
Digital Currency Group (DCG)venture capital firm focused on digital currency markets and parent company Genesis, denies its involvement in the crypto lender’s bankruptcy filing.
According to statement handed out on January 20, Gemini accepts recommendation to file for bankruptcy from the “special committee of independent directors.”
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In his statement, DCG highlighted this Genesis has independent legal counsel, financial advisors and the entire management team. Additionally, DCG added:
Neither DCG nor any of its employees, including those on Genesis’ board of directors, were involved in the decision to file for bankruptcy.
The Digital Currency Group emphasizes that regardless of Genesis filing to Chapter 11 bankruptcy, all of its subsidiaries, including “Grayscale Investments LLC, Foundry Digital LLC, Luno Group Holdings Ltd., CoinDesk Inc., and TradeBlock Corporation” will operate as normal.
Even so, DCG reminded him of that Genesis Global Tradings was not involved in the Chapter 11 filing.
DCG claims that Genesis Capital owes about $1.6 billion. Based on the statement, “DCG owes Genesis Capital approximately $526 million due in May 2023 and $1.1 billion based on notes payable due in June 2032.”
At the end of its statement, the Digital Currency Group noted:
DCG continues to engage with Genesis Capital and its creditors to reach an amicable solution for all parties.
However, it’s safe to assume that Gemini co-founder Cameron Winklevoss would disagree with this statement. The same day Genesis published a message regarding the archiving of Genesis Chapter 11, Winklevoss has taken took to Twitter to discuss the current situation between Genesis and Gemini.
In a long Twitter thread, Gemini co-founder disclose that Gemini and its founders are “preparing to take direct legal action against” DCG and its CEO Barry Silbert. It should be noted that according to to Winklevoss, Genesis is unable to repay its debt to Gemini because DCG owes around $2 billion to crypto lenders.
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