- In the Chapter 11 bankruptcy case involving its cryptocurrency lending unit, Genesis Global, Digital Currency Group (DCG) is getting close to settling the allegations that have been filed against it.
- DCG has been engaged in negotiations with the goal of arriving at an agreement in principle to resolve the claims, and the organization anticipates that they will soon be able to do so.
- As a result of the issues that are associated with the cryptocurrency lending industry, Genesis Global encountered financial difficulties and filed for protection under Chapter 11 of the bankruptcy code earlier.
- At the time that Genesis filed for bankruptcy, the company owed more than $3 billion to its many creditors, with Gemini alone being due $1 billion.
- Mark Shifke, who has previous expertise in CFO roles at Billtrust and Green Dot, was appointed by DCG as the new Chief Financial Officer.
- Michael Kraines, the previous Chief Financial Officer, resigned from his job in May, and during the transitional period, the functions of interim CFO were handled by the company’s President and Chief Strategy Officer.
- Although DCG reported a combined EBITDA loss of $79 million for the second quarter, the company’s EBITDA run rate was about $244 million when Genesis was excluded from the calculation.
- The company intends to carry out a number of financial transactions, one of which is the sale of a portion of CoinDesk, and it is also looking for strategic investors for its cryptocurrency exchange, Luno.
- The fact that CoinDesk was able to raise $15 million from the Consensus conference that took place in April demonstrates that DCG is making progress.
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