In breaking news, Digital Currency Group (DCG) said in a letter to shareholders that it is very close to resolving claims in Chapter 11 bankruptcy cases against its subsidiary Genesis.
In June 2022, Three Arrows Capital, a cryptocurrency hedge fund that had borrowed over $2 billion in Bitcoin from Genesis, collapsed due to market volatility and margin calls.
This resulted in a huge loss for Genesis, which had to wipe out most of its assets and liabilities. Genesis owed billions of dollars to its creditors, including users of Gemini and Earn.
In January 2023, Genesis filed for bankruptcy protection in New York to restructure its debt and sell its assets. However, the process was stalled due to disagreements between DCG and Gemini over the valuation and treatment of certain liabilities DCG assumed as a result of losses from Genesis.
DCG added that it thinks bankruptcy cases will be resolved “soon”.
*Not investment advice.
