By Hassan Mehmood (Saudi Arabia)
Genesis was having a legal tiff with its parent company Digital Currency Group. However, the firm has recently reached a $620 million settlement with DCG as per recent reports. On this account, DCG has an outstanding $320 million as remainder payment.
DCG Confirms the Settlement Deal
In accordance with the official filing from DCG added at the Southern District Court of New York, the parent firm confirmed the settlement agreement to Genesis and also declared the $324.5 million payable.
DCG submitted the filing at the court and noted that the deadline for repayment is set at April, 2024. At the same time, Genesis is able to call upon any remainder payments during the allotted timeline.
This deal will also close the ongoing lawsuit between Genesis and DCG. Genesis applied to the court of law to ensure repayment of loaned funds from DCG in September. Since the start of the lawsuit, DCG has released some payments.
Benefits of Settlement Contract
Genesis reported that the settlement contract comes with significant benefits and near-term advantages. At the same time, the firm noted that it will prevent associated risks, resource diversions, and expenses involved in a lengthy litigation process.
This deal is part of the plan to reimburse creditors. The creditors of the firm will conduct a vote before sending it to Judge Sean Lean for a final consideration.
At one end, the legal brawl with DCG is ending on a positive note while Genesis is also embroiled in a lawsuit brought by the Securities and Exchange Commission. SEC alleged that Gemini and Genesis are dealing in unregistered securities.
At the same time, regulators New York have also brought charges against DCG, Genesis, and Gemini for defrauding investors. Genesis filed for bankruptcy in January after suspending withdrawals in 2022.
Genesis and Three Arrow Capital Settle Legal Dispute
Another firm that Genesis is currently pursuing legal action against is bankrupted firm Three Arrow Capital. However, the firm has decided to settle the lawsuit with the hedge fund with a $33 million outstanding loans payment.
According to the court filings, Genesis has agreed to settle $1 billion in claims against 3AC with a $33 million repayment. The hedge fund filed for a bankruptcy in June 2022 following prolonged crypto winter.
As per reports, the settlement process was followed a fierce debate between the parties. However, the Genesis is awaiting approval from New York bankruptcy court to conclude the agreement.
Documents indicate that once finalized the settlement agreement will release both parties from any pending liabilities. Genesis filed a separate lawsuit against 3AC in July 2022, the final hearing on this case is expected to take place on 30th November.
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