DCG's $350M Loan: Is Genesis Bankruptcy Imminent?
The crypto world is watching Digital Currency Group (DCG) closely as concerns mount over the potential bankruptcy of its crypto lending subsidiary, Genesis Global Capital. A Genesis bankruptcy could deepen the crypto contagion and would lead to a cascade of pain for the crypto lender's parent company, Digital Currency Group. At the heart of the issue is a reported $350 million loan potentially impacting DCG's stability.
Barry Silbert’s Digital Currency Group (DCG) could be forced to pay back $350 million to financier and Chelsea FC owner Todd Boehly if its brokering subsidiary faces severe financial distress. This adds another layer of complexity to DCG's already precarious situation.
DCG Scrambles to Raise Capital
The lender’s parent company, the Digital Currency Group [DCG] is reportedly attempting to raise capital to save Genesis’ sinking ship. Why it? Crypto conglomerate Digital Currency Group is attempting to raise capital and avoid the bankruptcy of its Genesis broking subsidiary in part to avert the immediate financial fallout. A recent Financial Times report sheds light on the urgency of the situation.
Genesis Bankruptcy Plan Faces Objections
Digital Currency Group objected late Monday to the bankruptcy plan of its subsidiary Genesis Global Capital, saying that the crypto lender is proposing to pay its creditors unfairly. This legal challenge further complicates the path forward for both Genesis and DCG.
Equity Stake Transferred
Digital Currency Group (DCG) is handing over its equity stake in a Genesis trading entity to the global holding company for the bankrupt crypto lender. This restructuring move suggests DCG is trying to insulate itself from further financial repercussions.
Loan Repayment Deadline Looms
In November 2025, Genesis announced that DCG agreed to repay $324.5 million in loans by April 2025 to resolve a lawsuit filed in September seeking repayment. This existing loan obligation adds pressure to DCG’s liquidity position.
Bitvavo's Concerns
Dutch crypto exchange Bitvavo, which uses DCG for its staking service, says it can’t access ~$297M held at DCG and that DCG is “experiencing liquidity problems”– highlighting the broader impact of DCG's financial struggles on the crypto ecosystem.
Is Genesis heading for bankruptcy? Will DCG be able to secure the necessary capital? The future of both companies, and potentially the wider crypto market, hangs in the balance.