The insolvent cryptocurrency lender, Genesis, has reached an agreement with Digital Currency Group (DCG), its parent firm, to settle the $620 million lawsuit.
Genesis stated in a document filed with the New York Bankruptcy Court on November 28 that Digital Currency Group had committed to repay its outstanding debt of $324.5 million by April of 2019.
The lawsuit Genesis brought against DCG in September to recoup nearly $620 million in past-due loans will be resolved by the proposed arrangement.
Both businesses decided to settle Genesis’s bankruptcy claims in August, with DCG agreeing to swap its current $630 million loans. Since then, DCG has paid on a regular basis, and the outstanding balance is currently close to $320 million.
According to the document, Genesis will receive “significant and near-term benefits” from the payment, which will assist with the “risk, expense, and diversion of resources” needed for litigation. Genesis will use the money to reimburse its creditors before sending the plan to the bankruptcy judge for approval and holding a vote on it.