Digital Currency Group nearing settlement with Genesis creditors; reports $216M Q2 revenue as new CFO takes helm

Digital Currency Group (DCG) is adjacent to settling with the creditors of its subsidiary, Genesis, Bloomberg said connected July 31.

DCG reportedly released its second-quarter shareholder missive connected the aforesaid time arsenic Bloomberg’s article. In that letter, DCG wrote:

“After months of tireless negotiations led by DCG leadership, we are adjacent to reaching an statement successful rule to resoluteness the claims successful the Genesis Capital Chapter 11 cases … We expect to bring these cases to a adjacent soon …”

DCG additionally stated successful its missive that it volition supply “material updates” arsenic the assertion solution process approaches its conclusion.

The shareholder missive besides revealed that DCG brought successful $216 cardinal successful gross successful the 2nd quarter, marking a sequential gross maturation of 17%. However, the institution besides reported a consolidated quarterly nonaccomplishment of astir $79 million, chiefly attributed to a one-time counterparty default astatine Genesis costing $113 million.

Bloomberg besides reported that the institution has appointed Mark Shifke arsenic its caller main fiscal serviceman (CFO). Shifke has held past enforcement roles successful the fintech manufacture astatine firms specified arsenic Billtrust and Green Dot and astatine accepted fiscal firms specified arsenic JP Morgan and Goldman Sachs. He is seemingly caller to the cryptocurrency industry.

Genesis’ bankruptcy began successful aboriginal 2023

The lending limb of Genesis Global Holdco — a subsidiary of DCG — filed for bankruptcy extortion connected Jan. 19, astatine which clip it said it owed $3.5 cardinal to its 50 largest creditors. The company’s prolonged bankruptcy proceedings are inactive ongoing.

Gemini, a crypto speech that worked to supply an interest-bearing “Earn” merchandise with Genesis, has been dramatically affected by proceedings. The institution is present 1 of Genesis’ largest creditors. Bloomberg noted that Gemini said connected July 28 that it “remains frustrated” with a woody expected to adjacent successful mid-July.

Gemini antecedently launched a lawsuit against DCG and its CEO, Barry Silbert, alleging “fraud and deception” successful aboriginal July. DCG has denied immoderate wrongdoing. Genesis separately reached an statement with different creditor, the failed crypto speech FTX, according to tribunal filings connected July 27.

The station Digital Currency Group nearing colony with Genesis creditors; reports $216M Q2 gross arsenic caller CFO takes helm appeared archetypal connected CryptoSlate.