The Ad Hoc Group of Genesis Global Capital (GGC) lenders have responded to a public bankruptcy plan update, calling the reached in-principle agreement “wholly insufficient”. The agreement was reached between the Digital Currency Group (DCG) and the unsecured creditors (UCC) and debtors, proposing USD equivalent recoveries of 70%–90%. The Ad Hoc Group argued that the debtors and UCC are “unwilling to comply with their fiduciary obligations” to maximize creditor recoveries, and that DCG should not be entitled to non-consensual third party releases.The Ad Hoc Group also argued that DCG should not be receiving $630 million that matured and should have been paid 3 months ago, but instead will only be paying $275 million now and will pay another $328.8 million in another 2 years. They argued that this contribution is “wholly insufficient to satisfy” the loan amounts and that the debtors and UCC have agreed to “improperly cause the release of third party claims” against DCG and its related parties.Genesis is among cryptocurrency lending firms that were affected by the cryptocurrency winter of 2022. The lender filed for bankruptcy in January 2023 after suspending withdrawals amid a massive liquidity crisis in mid-November 2022. The firm reportedly owed more than $3.5 billion to its top 50 creditors, including firms like Gemini.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Asia |
| Countries | |
| Sentiment | negative |
| Relevance Score | 8 |
| People | None, Brian Rosen, Jordan Sazant |
| Companies | Gemini Exchange, SEC, Digital Currency Group, Genesis Global Capital, Ad Hoc Group |
| Currencies | Ethereum, US Dollar, Bitcoin, DeGate, Gold Guaranteed Coin |
| Securities | None |
