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Crypto VC DCG Objects to Genesis Settlement
Crypto VC Digital Currency Group (DCG) has raised objections to defunct crypto lender Genesis’s plans to sell its assets amounting to around $1.6 billion. The assets included shares in Grayscale’s Bitcoin Trust (GBTC), Grayscale Ethereum Trust (ETHE), and Grayscale Ethereum Classic Trust (ETCG).
DCG’s Objections
In a fresh filing, DCG submitted its objection to Genesis’s proposed settlement with New York attorney general office. DCG contended that Genesis did not follow proper legal processes and the agreement falsely diverted funds to preferred creditors. DCG argued that the settlement is a “back-door attempt to circumvent U.S. bankruptcy law” and characterized it as a “subversive arrangement.”
Backing from Former NY Federal Attorney
In a separate filing, Jason Brown, an ex-senior federal attorney in New York, expressed support to DCG’s objection. He asserted that the settlement is not in the usual course to forgo discussions and should have involved extensive merits-based assessments. Brown worked alongside the New York Attorney General and oversaw various aspects of the NYAG.
Genesis’s Bankruptcy Filing
Genesis filed for Chapter 11 bankruptcy in October in the Southern District of New York, seeking protection from its creditors. The exchange noted that it would use $150 million of cash to fund the company in bankruptcy and repay creditors.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
