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Genesis insolvency could saddle DCG with immediate debt

DCG is reportedly staring at an immediate, sizable loan obligation tied to Genesis's bankruptcy.

By Finst News
• 3 min read
Genesis insolvency could saddle DCG with immediate debt

Digital Currency Group (DCG) is apparently staring at an immediate, large loan debt tied to the bankruptcy of its subsidiary Genesis. This was reported by the Financial Times citing insider sources.

According to the report, the repayment of an outstanding loan provided by American billionaire Todd Boehly would amount to $350 million. Boehly lent DCG the money in a funding round last November.

According to insiders, the loan includes senior rights that guarantee Boehly immediate repayment of the borrowed amount in the event Genesis becomes insolvent. DCG CEO Barry Silbert disclosed this debt in a letter to investors last month. He did not specify the possible maturity date.

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DCG is meanwhile trying to attract new lenders for its ailing subsidiary Genesis. In total, DCG's debts run around two billion dollars. According to the report, the crypto conglomerate emphasized that its relationship with Boehly's Eldridge is separate from Genesis's fate. Insiders say Eldridge is interested in preserving its investment and is therefore working with DCG to find a solution. Genesis and DCG ran into trouble because of the entire FTX debacle.

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