In a significant financial recovery, Digital Currency Group (DCG) has announced the repayment of over a billion dollars in debts, a move that marks a turnaround from the challenges faced during the recent bear market. This substantial repayment includes a significant portion owed to its subsidiary, Genesis.
Digital Currency Group Clears Over a Billion Dollars in Debts
The repercussions of the FTX crash, which occurred over a year ago, were deeply felt across the cryptocurrency ecosystem, impacting several companies including Digital Currency Group (DCG) and its affiliates. Genesis, a notable subsidiary of DCG, went bankrupt, leaving its creditors with unpaid debts exceeding $3.4 billion. This situation even led to legal confrontations with Gemini, an exchange owned by the Winklevoss twins.
Just a year ago, Barry Silbert, CEO of DCG, described 2022 as the toughest year of his life. However, in a recent statement released last Friday, DCG revealed that it has settled its debts, a substantial amount of which was owed to Genesis:
“DCG is pleased to announce that we have completed the repayment of all short-term loans of Genesis. In total, DCG has paid over 1 billion dollars in debts to its creditors in just over a year, with nearly 700 million dollars of that to Genesis, fulfilling all current obligations.”
Barry Silbert expressed his satisfaction with this achievement and his excitement for the future of the industry and DCG’s leading role in it.
Meanwhile, Grayscale, which is awaiting the approval of its spot Bitcoin ETF by the Securities and Exchange Commission (SEC), is also a part of DCG. The approval of this ETF could bring a welcome boost to the group, potentially leading to a significant influx of capital. Presently, Grayscale’s flagship product, the GBTC, has almost completely closed its discount, with a share price of $39.36 compared to the over-the-counter (OTC) market price of $37.16.
