DCG signs a 30-day mediation period with creditors, founder Barry Silbert sells shares for the first time

After the collapse of the FTX exchange, Genesis, which was associated with it, also filed for bankruptcy protection earlier this year. After months of discussions with various creditors, it was reported at the end of April that Genesis creditors had abandoned the previous agreement. At that time, DCG stated that these creditors had made new demands, prolonging the legal process.

DCG's $630 Million Loan Extension

DCG had a total of $630 million in loans due between May 9 and 11. As the deadline approached, DCG issued a last-minute announcement stating that they had signed a 30-day mediation period on May 1. DCG will continue to engage with various stakeholders in the restructuring process with Genesis Capital, hoping to find a solution within a month. DCG also mentioned that they are discussing capital injection with providers and refinancing the outstanding debt with Genesis.

1) DCG Statement on Genesis Mediation:https://t.co/f6h8kI9G5S

DCG continues to be engaged with the various stakeholders in the Genesis Capital restructuring process pursuant to the 30-day mediation period entered into by all parties on May 1.

— Digital Currency Group (@DCGco) May 9, 2023

According to the SEC filing, DCG's founder and CEO Barry Silbert recently sold a portion of his Grayscale Ethereum Classic Trust (ETCG) shares, valued at approximately $750,000. While this sale only represents a small portion of the fund's $225 million assets under management, it appears to be Silbert's first share sale.

For more analysis on the situation with DCG, please see: Will DCG's $630 Million Due This Week Be Deferred?