In a recent update shared to cryptocurrency exchange users Geminiit has been revealed that the community that had great potential and activities in the spectrum of cryptocurrency markets, Digital Currency Group (DCG) and Barry Silbert, missed the deadline of debt repayment of 630 million dollars; to a subsidiary of Genesis Global Capital.
DCG is a New York-based venture capital group founded by Barry Silbert. The company has invested in and manages hundreds of related companies cryptocurrency market among them Genesis, Grayscale, Coindesk, Foundry and Luno.
Genesis filed for bankruptcy last January. Genesis was once one of DCG’s main pillars along with Grayscale, bitcoin miner Foundry, the largest digital media outlet for cryptocurrency markets CoinDesk, and cryptocurrency exchange Luno. Layoffs have hit several DCG companies in the past year, as well as DCG itself.
Gemini, Genesis’ main lender, said it is working hard and The beginning and other creditor groups and considers granting forbearance and avoid basic situations.
“Forbearance will be based in part on whether lenders believe that DCG will engage in good faith negotiations for a compromise,” Gemini’s statement said.
The total amount owed by Genesis of DCG to Gemini is Rs 900 million dollars. Earlier in May, Gemini warned that DCG was at risk of bankruptcy if the $630 million debt was not repaid.
The founder of the Gemini exchange, Cameron Winklevoss, accused DCG of engaging in “bad faith tactics” and threatened legal action against Silbert and DCG. In the latest update, Gemini said that if a mutually acceptable agreement cannot be reached, it will work with Genesis to propose the terms of a revised restructuring plan that does not require DCG approval.
In light of DCG’s mistakes, Genesis, in collaboration with the creditors’ committee, and Gemini are considering whether to give DCG more time to prevent the last possible default.
Their decision will depend on DCG’s commitment to fair and open negotiations, Gemini said in a statement. The company warned that if an agreement could not be reached to recover the $630 million from DCG, then Gemini and other interested parties would work on a restructuring plan for Genesis that could proceed even without DCG’s involvement.