Genesis parent Digital Currency Group is negotiating with potential creditors to repay parts of its outstanding debt, according to a Dutch crypto exchange which says it is owed money by the digital-asset conglomerate.
(Bloomberg) — Genesis parent Digital Currency Group is negotiating with potential creditors to repay parts of its outstanding debt, according to a Dutch crypto exchange which says it is owed money by the digital-asset conglomerate.
DCG made a proposal to refund at least 70% of its outstanding 280 million euro ($300.7 million) debt to exchange Bitvavo, the latter said in a blog post on Tuesday. It has rejected the offer because it believes DCG has enough funds to repay them in full.
The offer was made as part of active conversations that the two are engaged in, Bitvavo said, after crypto broker Genesis stopped reimbursements from its lending unit in November. The remaining 30% is under discussion with DCG, it added, but “they are only willing to repay part of it within a period acceptable to Bitvavo”.
DCG didn’t immediately respond to a request for comment confirming the talks.
The Dutch exchange is one of numerous creditors seeking to recover their assets from DCG, including Gemini, the Winklevoss-backed exchange which has roughly $900 million in customer deposits stuck with Genesis.
Genesis told clients earlier this month that it needed more time to come up with a solution for the troubles at its lending unit. The company has been trying to raise fresh cash for several months, warning that it may face bankruptcy if it does not find the money soon, Bloomberg News reported.
The troubled brokerage had $2.8 billion in outstanding loans on its balance sheet in November, with about 30% of those loans made to related parties including DCG.
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