Genesis Lenders Disappointed with Settlement Agreement with Digital Currency Group
Summary:
Lenders of bankrupt cryptocurrency lender Genesis express dissatisfaction with settlement agreement; disagreement with proposed terms by Digital Currency Group (DCG) and unsecured creditors. Lenders argue DCG's contribution is insufficient and object to non-consensual third-party releases. Genesis filed for bankruptcy in January 2023 amidst a liquidity crisis.
The lenders of bankrupt cryptocurrency lender Genesis are expressing their dissatisfaction with the recent settlement agreement reached with other parties, including the Digital Currency Group (DCG). Lawyers representing the Ad Hoc Group of Genesis Global Capital lenders, Brian Rosen and Jordan Sazant, responded to a public bankruptcy plan update, stating that the agreed-upon settlement is inadequate. The update had mentioned that DCG had reached an agreement in principle with Genesis' unsecured creditors and debtors, proposing recoveries ranging from 70% to 90% of the USD equivalent. However, the Ad Hoc Group and the Gemini exchange do not support this deal. The lenders argue that DCG's contribution is insufficient to cover the loan amounts and that the debtors and unsecured creditors are failing to fulfill their fiduciary responsibilities to maximize creditor recoveries. They also object to DCG receiving non-consensual third-party releases. The lenders highlight that DCG will only be paying a fraction of the matured debt immediately, with the rest to be paid in two years. Genesis filed for bankruptcy in January 2023 after facing significant challenges during the cryptocurrency winter of 2022.
Published At
8/30/2023 1:46:20 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.