According to Blockworks, Digital Currency Group (DCG) is facing allegations of defaulting on debts owed to its subsidiary Genesis Global, which is in bankruptcy proceedings. The creditors' group alleges that DCG is leaving debts in significant amounts in both US dollars and bitcoins, to the detriment of the debtor's estate and creditors. These allegations came shortly after DCG announced that it had fully repaid short-term loans from Genesis. But Genesis and other creditors claim DCG still owes an unspecified amount in bitcoins, as well as $26 million in interest and late fees, according to their agreement.

DCG reportedly made a transfer of about $189 million and relinquished a portion of ETHE and ETCG shares in order to fulfil its BTC obligations. These shares, used as collateral for loans from Genesis, were Grayscale Ethereum Classic Trust (ETCG) and Grayscale Ethereum Trust (ETHE). However, under the September agreement, DCG can only repay its obligations in U.S. dollars and bitcoins, not using other assets.

Genesis cannot accurately determine the remainder of DCG's bitcoin obligations until it sells ETHE and ETCG shares and the proceeds are used to redeem the bitcoins, with costs to be borne by DCG. Genesis filed a lawsuit in September seeking reimbursement of the outstanding loan balance, which is more than $700 million and matures in May 2023. Court documents from September indicate that DCG owes its lenders, including Genesis, more than $1.7 billion. Genesis claims DCG has an outstanding balance of 4,550 BTC (approximately $214 million) and 14,048 BTC in cash (approximately $3.5 million), as well as 70 BTC in late fees. DCG has not yet provided comment on Blockworks' request.