DCG pays off million-dollar debt at subsidiary Genesis

Despite its tight financial situation, Digital Currency Group has managed to raise enough money to pay off subsidiary Genesis.

By its own admission, crypto group Digital Currency Group (DCG) has paid off more than a billion dollars in debt to subsidiary Genesis. This is stated in a statement of the group's CEO, Barry Silbert, at X.

According to the statement, DCG has paid "more than a billion dollars in debt," including $700 million to its own subsidiary, the bankrupt loan service Genesis. This fully paid off "short-term debt," as DCG claims.

The subsidiary filed for bankruptcy in January following the FTX debacle. The company itself is sitting on a large mountain of debt. The crypto exchange Gemini is demanding $900 million from former crypto mining service Genesis. A lawsuit is also pending here.

In September of last year Genesis then sued its own parent company DCG for $600 million in damages for payments due.

By a subsequent lawsuit against all parties involved by a New York court, many expected the once-mighty DCG to go down quickly.

But after the sale of its own crypto medium CoinDesk and the general recovery in the market, the company seems to be able to pull its head out of the noose for now.