• Genesis Global’s creditors rejected a previously accepted restructuring plan, which will prolong the bankruptcy process.
• The Digital Currency Group (DCG) released a statement warning of the implications of this rejection.
• Genesis owes $3.6 billion to its top 50 creditors, with Gemini exchange having the largest claim at almost $900 million.
Genesis Global Files for Bankruptcy
In January 2021, Genesis Global filed for bankruptcy after facing financial difficulties following 3AC and FTX Derivatives Exchange’s downfall.
Creditors Reject Restructuring Plan
Two months later, creditors agreed to a restructuring plan submitted by Genesis Capital; however, recently they have reneged on this agreement and raised new demands. This has prolonged the court proceedings and caused uncertainty as to when it might be resolved.
Debt Owed to Creditors
Genesis owes $3.6 billion to its top 50 creditors, with Gemini exchange having the largest claim at almost $900 million. As part of an agreement with its creditors earlier in the year, some assets have been liquidated in order to settle a significant portion of existing debt.
Statement from DCG
The Digital Currency Group (DCG) released a statement warning that the procedure may not be completed in due time as should be anticipated post-rejection and that hundreds of thousands of individual creditors may not be aware of this development yet.
Genesis is still dedicated to quickly resolving their debt situation but is now uncertain when it will be achieved due to recent events which have delayed proceedings further