Digital Currency Group (DCG) has raised objections to the bankruptcy plan of its subsidiary Genesis, alleging that it overpays certain creditors and customers. DCG asserts that the proposed debt-repayment plan favors select creditors and customers, leading to impermissible windfalls. The parent company of Genesis Global has also objected to the plan, stating that some creditors would receive more than they are owed. The dispute involves significant amounts, with BlockFi alleging a debt of $129 million from 3AC, countered by 3AC's claim that BlockFi owed them $280 million, resulting in a sealed settlement. The situation has drawn attention to the potential impact of Genesis dumping $1.4 billion in GBTC to pay creditors, raising concerns about the future of Bitcoin.
#Crypto Firm DCG Raises Legal Concerns Over Genesis' Bankruptcy Strategy, Seeks Plan Rejection https://t.co/JueHGSnwL5
#Crypto Titan Digital Currency Group Opposes Genesis' Restructuring Plan for Favoring Select Creditors https://t.co/JueHGSnwL5
The parent company of Genesis Global objected to the crypto lender’s bankruptcy plan, saying some creditors would get more than they are owed https://t.co/ODv71PmCnX
How Bitcoin will fare when Genesis dumps $1.4bn in GBTC to pay creditors https://t.co/nHE08p2zCM
BlockFi alleged that 3AC was in debt to them for $129 million. 3AC countered with claims that BlockFi owed them $280 million. The firms have reached a settlement, but the details are under seal. Read more: https://t.co/Ge13OJNVNa
Digital Currency Group Slams Genesis Payment Plan ► https://t.co/QEuttTmVZZ https://t.co/QEuttTmVZZ
Barry Silbert’s Digital Currency Group is alleging that customers of bankrupt subsidiary Genesis are slated to get an impermissible windfall under the crypto lender’s proposed debt-repayment plan. https://t.co/WjgHEXqj8v
DCG objects to extra payouts for special Genesis creditors https://t.co/AatwF0q26z
DCG says the Genesis bankruptcy plan should not be confirmed because it overpays creditors https://t.co/bKXfKRVey6
DCG says Genesis bankruptcy plan overpays customer claims https://t.co/17Gf3N5hlL https://t.co/4Ze27D5XTp