Bankrupt Genesis Global Capital has filed lawsuits against Digital Currency Group (DCG) and Digital Currency Group International (DCGI) seeking the repayment of several crypto loans valued at more than $600 million.
According to the lawsuits, DCG borrowed in 2022 around $500 million through four different agreements, and in 2019, DCGI borrowed 18,697.7 BTC ($481.5 million), of which 4,550.5 BTC ($117 million) was still outstanding.
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Both Genesis and DCGI are subsidiaries of DCG.
Both loans matured in May of this year. According to the prosecution lawyers, the entities were in "wrongful possession of properties" belonging to the Genesis bankruptcy estate.
Genesis representatives have pointed out DCG wanted to convert its debt into "indefinite loans" with unlimited maturities, but the lender retained the right of recovery. Genesis is also seeking late payment fees.