- Bankrupt financial services firm Genesis has filed an update to its plan, first proposed on January 20.
- The crypto lender disputes claims by parent company Digital Currency Group and hedge fund Three Arrows Capital.
- While negotiations are ongoing, the update makes it clear that creditors won’t see the full value of their claims.
Genesis, an investment firm focused on digital assets, filed an update to the plan it proposed on January 20, when filing for bankruptcy. Digital Currency Group (DCG) is the parent of the three Genesis companies that filed for bankruptcy.
The updated plan reflects that negotiations are ongoing and reveals that creditors are unlikely to see the full value of their claims.
Bankrupt crypto lender unlikely to pay back creditors in full
Genesis companies first filed for bankruptcy on January 20, 2023. The three companies owned by DCG have updated their plan to wind-up the digital assets focused investment firm and agree on several key issues that were disputed earlier.
Moreover, Genesis, its creditors and stakeholders state their positions and negotiations are still ongoing. In the last update on the bankruptcy filing, the court had appointed a mediator to help resolve differences between the entities and aid the process of coming up with a recovery plan for creditors.
The update filed earlier today indicates Genesis disputes claims made by DCG and Three Arrows Capital’s (3AC). It explains that creditors are unlikely to receive the full value of their claims, as the three Gemini companies reach an agreement.
The filing reveals that DCG, 3AC, Alameda and FTX claims are labeled as impaired and all three group companies are “deemed to reject” the same. Holders of the DCG, 3AC and Alameda/ FTX claims are not entitled to reject or accept the updated plan of the bankrupt crypto lender, as seen on page 31 of the update document.
According to a Reuters report from January, Genesis owes its creditors upwards of $3 billion. The bankrupt crypto lender has more than 100,000 creditors and its most notable ones include Gemini Trust Company (owed $766 million), crypto fund Mirana (owed $151.5 million), MoonAlpha Finance (owed $150 million), VanEck’s New Finance Income Fund (owed $53 million), and trading firm Cumberland ( owed $18.7 million).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Turn off Solana and win $400,000 - Solana Foundation executive announces offer
Solana has been touted as an Ethereum killer, but as with every blockchain in the crypto market, the network does not come without its fair share of issues. While many who get hacked or exploited deal with the issues after the fact, Solana intends to get a step ahead by making a very lucrative offer to white hat hackers.
Grayscale vs. SEC deadline: Commission faces a midnight Friday deadline to challenge August 29 loss
Grayscale Investments secured a resounding victory in its longstanding case against the US Securities and Exchange Commission in late August. The lawsuit started in October after the firm approached the D.C. Circuit Court pushing to have its Bitcoin Trust converted to an Exchange-traded fund.
Loom Network price hits strong weekly resistance after 32% surge as LOOM ranks high on Korea’s Upbit
Loom Network token is highly bullish, passing as a rather lucrative investment for scalping traders, buying and selling the asset within a short period to make small profits.
Voyager founder charged by CFTC for fraud and by FTC for misleading investors that lost $1 billion
Voyager was among the first crypto companies to collapse and file for bankruptcy in 2022. While the platform has been making efforts to return its customers' assets since then, it looks like the regulatory bodies are not willing to be patient.
Bitcoin: Can BTC bears challenge crypto’s 2023 bull rally?
Bitcoin (BTC) price is at a critical juncture in the weekly time frame, where bulls and bears are battling for control. However, a multi-time-frame analysis shows that BTC is bullish daily and is likely to rally higher.