Venture firm Digital Currency Group has reached an agreement in principle with the lenders of its subsidiary cryptocurrency lending service Genesis. DCG promises to return investors up to 90% of their investment.
If the repayment plan is approved, the lawsuit says lenders without collateral will be able to recover between 70% and 90% in dollar amount, according to the lawsuit. It will all depend on the asset.
Now DCG itself has significant debt – $630 million in unsecured loans and a $1.1 billion unsecured promissory note that needs to be repaid by 2032. In addition, DCG needs to pay $275 million in installments.
In July, DCG and its founder Barry Silbert were sued by the Gemini exchange – the company owed users of the Gemini Earn program.