Genesis, the now-bankrupt cryptocurrency lending firm, continues to be mired in legal issues. As per a recently filed court document, Genesis owes over $3.5 billion to its top 50 creditors, including notable names such as Cumberland, Gemini, Mirana, MoonAlpha Finance, and VanEck’s New Finance Income Fund, among others.
The genesis of the present predicament began with an “agreement in principle” between Genesis and Digital Currency Group (DCG) that led to the submission of a full settlement in February. However, the deal soon foundered when several of the firm’s creditors raised their demands, undermining the initial settlement structure.
Gemini, in particular, is set to file a claim to recover over $1.1 billion in digital assets by May 22. Their proposal, called the “Gemini Master Claim,” seeks to regain approximately $1.1 billion worth of digital assets that the firm did not return to about 232,000 Gemini Earn users who had active loans as of January 19, 2023. The claim suggests that it is self-contained and does not require DCG’s approval or engagement to be implemented.
The bankruptcy court will take into account the willingness of DCG to engage in good-faith negotiations on a consensual deal while considering factors for resolving Genesis’ debt obligations. Unfortunately, Genesis’s protracted settlement process has been riddled with controversy since its inception.
Despite the long-standing legal issues, the cryptocurrency market has been relatively unaffected, with Bitcoin trading at $27,000 on the one-day chart, according to TradingView.com.
About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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