Tag:

loan

Decrypt logo
NFT Gaming

Why Digital Currency Group Is Suing Its Own Subsidiary Over $1.1 Billion Loan

by admin



In brief

  • Digital Currency Group has sued its subsidiary Genesis, the now-shuttered crypto lender.
  • The crypto giant claims that a $1.1 billion loan it made to Genesis was more than enough to cover its losses following its 2022 collapse—and that the firm has actually profited.
  • The latest lawsuit comes after Genesis in May sued Digital Currency Group for $3.1 billion.

Digital Currency Group has sued its subsidiary Genesis, claiming that the collapsed crypto lender has actually profited in the long-term following its collapse and subsequent bailout. 

In a lawsuit filed Thursday, DCG said that the $1.1 billion loan it gave to Genesis in 2022 was ultimately more than enough to cover its losses.

Crypto lender Genesis went bankrupt in 2023 as it had lent money to collapsed crypto firm Three Arrows Capital and other firms during the bear market and “crypto contagion” that spread across the industry in 2022.



DCG stepped in with capital to help repay Genesis customers. But in Thursday’s lawsuit, DCG argued that due to a rise in the value of recovered collateral from Three Arrows Capital, its obligations under the promissory note have been reduced to zero. 

This, the lawsuit states, is because the assets from Three Arrows Capital were in Bitcoin and Grayscale Bitcoin Trust shares that have shot up in value since 2022. 

“Genesis ultimately suffered no loss from TAC’s default; rather Genesis has profited by hundreds of millions of dollars (which Genesis is entitled to keep),” the lawsuit said. 

It added: “Because of the significant appreciation in cryptocurrency values since the petition date, this has resulted in recoveries that exceed the dollar value of the creditors’ claims as of the petition date.”

Genesis was a crypto lender run by crypto behemoth DCG. It allowed users to earn cash on their crypto holdings by allowing them to be loaned out to others.

Genesis made billions of dollars in loans to beleaguered crypto firms like Three Arrows Capital and the FTX-linked Alameda Research, which were about to default on their debt due to market contagion stemming from the collapse of Terra. 

When mega digital asset brand FTX collapsed, Genesis announced to clients that it would pause withdrawals from its lending arm due to the “unprecedented market turmoil.”

“DCG took extraordinary efforts to voluntarily support Genesis in 2022, including by issuing a promissory note to Genesis to help close a potential book equity gap resulting from the collapse of Three Arrows Capital,” a DCG spokesperson told Decrypt on Friday. “We have consistently met our contractual obligations under that note, but believe those have now been fully satisfied. We are simply asking the Court to confirm that the valid and binding obligation was fully satisfied.”

Thursday’s lawsuit comes after Genesis in May sued DCG, alleging that its parent company and CEO Barry Silbert made fraudulent transfers from the lender as it was collapsing in 2022. It’s seeking $3.1 billion in damages. 

Editor’s note: This story was updated after publication to include a statement from DCG.

Daily Debrief Newsletter

Start every day with the top news stories right now, plus original features, a podcast, videos and more.



Source link

0 comments
0 FacebookTwitterPinterestEmail
Copy Link
Esports

Wrexham legend Paul Mullin leaves club on season-long loan deal

by admin



Jun 23, 2025, 02:44 PM ET

Paul Mullin, the poster boy of a Wrexham team soaring through England’s football leagues following their takeover by Hollywood celebrities, has left the club to join League One side Wigan on a season-long loan deal.

“I’m excited for the next part of my story,” Mullin told Wigan’s official website on Monday. “I’ve scored a lot of goals over the last few years, but more than anything, I give my absolute all for the club that I’m playing for, and I’m going to do that again with Wigan.”

Wigan said the loan deal was subject to the approval of the English Football League and the Football Association, and international clearance.

Mullin helped Wrexham become the first team in the history of English football’s top five divisions to secure three successive promotions, and there is a giant mural of the 30-year-old striker in the center of the city.

Paul Mullin played a key role in Wrexham’s rise from the wilderness of English football. Matthew Ashton – AMA/Getty Images

He formed such a close bond with Ryan Reynolds, one of the club’s owners, that he even appeared in the last “Deadpool” movie.

But Mullin, who had been Wrexham’s player of the season in each of the three previous years, was only a bit-part performer when the team won promotion to the second tier last season.

Editor’s Picks

2 Related

It was a sudden turn of events for a player who has had a leading role in the popular “Welcome to Wrexham” fly-on-the-wall documentary created by Reynolds and Rob McElhenney to follow their progress as rookie soccer club owners.

McElhenney once hailed Mullin as “one of the greatest football players in the world.”

Mullin has scored 110 goals in 172 games for Wrexham.



Source link

0 comments
0 FacebookTwitterPinterestEmail
Decrypt logo
NFT Gaming

JPMorgan to Allow BlackRock Bitcoin ETF Shares as Loan Collateral: Bloomberg

by admin



Wall Street giant JP Morgan plants to allow its wealthy clients to use shares in crypto ETFs, like BlackRock’s iShares Bitcoin Trust, as collateral for loans.

Unnamed sources familiar with the matter told Bloomberg that the bank will also begin taking crypto holdings into account when assessing clients’ net worth and liquid assets. This would mean that crypto gets the same treatment as real estate and vehicles when assessing a client’s ability to repay a loan.

JPMorgan did not immediately respond to a request to comment from Decrypt.

The bank has had a love-hate relationship with Bitcoin.

JPMorgan CEO Jamie Dimon has long been a Bitcoin skeptic, but recently said the bank would begin allowing customers to trade Bitcoin and Ethereum.

This is breaking news and will be updated.

Daily Debrief Newsletter

Start every day with the top news stories right now, plus original features, a podcast, videos and more.



Source link

0 comments
0 FacebookTwitterPinterestEmail
Decrypt logo
GameFi Guides

Cetus Reveals Recovery Plan, Taps SUI for Bridge Loan

by admin



Six days after a $223 million exploit shook the Sui ecosystem, decentralized exchange Cetus has announced a recovery initiative that would override hacker-controlled wallets through a protocol-level upgrade, if the community approves it.

The vote will determine whether $162 million in frozen funds can be forcefully reclaimed from the attacker’s wallets via a protocol-level upgrade as part of Cetus’s “larger recovery plan.”

Cetus has requested a community driven vote to recover the funds frozen following last week’s hack.

In response, the Sui Foundation has released code for an onchain community vote. Sui validators can cast votes, and Sui holders can also vote directly through stake delegation.… https://t.co/pVLTItN0MH

— Sui (@SuiNetwork) May 27, 2025

“Using our cash and token treasuries, we are now in a position to fully cover the stolen assets currently off-chain,” Cetus tweeted on Tuesday. “This includes a critical loan from the Sui Foundation, making a 100% recovery for all affected users possible.”

The recovery plan follows a recent attack on Cetus that exploited flaws in DEX’s automated market maker and oracle logic, enabling hackers to drain liquidity pools across the network.

A community vote, launched at 1 p.m. PT on May 27 and open for up to seven days, will decide whether to authorize a protocol upgrade that reclaims the frozen funds without the hacker’s signature. 

If approved, the assets will be moved into a 4-of-6 multisig wallet jointly controlled by Cetus, auditing firm OtterSec, and the Sui Foundation, according to a statement from Sui.

SUI holders can delegate their stake to validators who vote “yes,” “no,” or “abstain.” The Foundation’s own stake is excluded to preserve neutrality. 

The upgrade will only pass if over 50% of the total stake participates and a majority votes in favor.

As of early Wednesday morning, 37.3%  had voted “yes,” with zero “no” votes recorded. The remaining 62.7% of votes have not been cast. 

The vote can close early if the result becomes mathematically decisive after the initial 48-hour period.

If passed, the protocol upgrade will permit aliased addresses to perform exactly two transactions, one for each hacker-controlled wallet. These transactions will transfer funds into the multisig wallet. 

The Cetus exploit occurred due to a critical flaw in overflow protection, where a faulty bitwise truncation check allowed attackers to bypass safeguards and manipulate liquidity calculations, according to a post-mortem report from blockchain security firm Dedaub.

Blockchain analytics firm PeckShield confirmed last Thursday that $61.5 million of stolen funds in USDC has since been bridged to Ethereum; the rest remains frozen on Sui.

Sui (SUI) is up 6.9% in the last 24 hours, to $3.70 after falling sharply from $4.18 to $3.82 in the immediate aftermath of the Cetus exploit, CoinGecko data shows.

Edited by Sebastian Sinclair

Daily Debrief Newsletter

Start every day with the top news stories right now, plus original features, a podcast, videos and more.





Source link

0 comments
0 FacebookTwitterPinterestEmail
SUI stalls below resistance amid $223M Cetus Protocol hack
GameFi Guides

Sui Foundation issues loan to Cetus for user compensation

by admin



The Sui Foundation has stepped in with a secured loan to help decentralized exchange Cetus fully compensate users affected by a recent $223 million exploit.

In a statement posted on X on May 27, the foundation said the loan will cover funds that the hacker managed to bridge out of the Sui (SUI) network before validators froze their wallets. Cetus will combine the loan with its treasury assets to reimburse affected users in full, provided the community approves a separate on-chain vote to unlock the frozen funds.

Cetus echoed this sentiment in another statement, apologizing for the incident and asking the Sui community to support the recovery vote. “We are now in a position to fully cover the stolen assets currently off-chain,” the team said, “if the locked funds are recovered through the upcoming community vote.”

On May 22, Cetus suffered a complex exploit targeting a flaw in its concentrated liquidity market maker contracts. The attacker exploited unchecked math operations in a third-party code library and manipulated prices using a flash swap. As a result, they were able to drain several pools by faking liquidity deposits and repeatedly withdrawing real tokens.

The attacker managed to transfer a significant amount of the stolen assets to Ethereum (ETH), even though validators were able to freeze $162 million on-chain. These bridged funds are the focus of the current compensation plan.

The hack caused the CETUS token to drop by 40% and is still 20% down in the past week. The total value locked on the Sui network also fell from $2.13 billion to $1.77 billion, as per DefiLlama data. 

Though the bug was in Cetus’ code and not Sui’s base infrastructure, the Sui Foundation acknowledged its role in supporting ecosystem-wide security. Alongside the loan, the foundation announced an additional $10 million commitment to fund audits, bug bounties, and formal verification tools.

To encourage white-hat hackers to find vulnerabilities before they are exploited, it also intends to broaden its bug bounty program to include high-value protocols like Cetus, which have over $50 million in TVL.

While the quick action from validators helped prevent further damage, some in the community voiced concerns that freezing wallets undermines the decentralization ethos of blockchain. Others praised the swift response and transparent handling of the crisis.

A detailed recovery plan from Cetus is expected soon. Compensation efforts are scheduled to begin regardless of the vote’s outcome, though full recovery depends on whether the community supports unfreezing the remaining funds.





Source link

0 comments
0 FacebookTwitterPinterestEmail
Close