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Crypto Lender Genesis Capital Faces Objections from Digital Currency Group over Bankruptcy Plan

Crypto Lender Genesis Capital Faces Objections from Digital Currency Group over Bankruptcy Plan

CointimeCointime2024/02/07 05:02
By:Cointime

Digital Currency Group (DCG) has objected to Genesis Capital's bankruptcy plan, which proposes to offer customers more than what is legally required. DCG has filed a motion citing violations of the Bankruptcy Code and is urging the court to reject Genesis Capital's plan, which it believes disproportionately benefits certain creditors. Genesis Capital is currently liquidating $1.6 billion worth of assets due to the harsh conditions of the 2022 crypto bear market and seeks to incorporate a $21 million settlement with the United States Securities and Exchange Commission into its bankruptcy case. The outcome of this dispute could set a precedent for how similar cases are handled in the future, impacting the broader crypto lending industry.

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