Genesis Global Capital Accused of Voter “Manipulation” by Creditors
Main Breakdowns:
– Creditors of bankrupt crypto lender Genesis Global Capital (GGC) have accused the company of vote-buying to manipulate the bankruptcy process.
– The proposed $175 million deal with defunct exchange FTX has faced backlash from other creditors, including Gemini, who claim it is a “sweetheart pre-plan deal” and cannot be accepted at face value.
– The Fair Deal Group, a set of creditors, has accused Genesis of ballot-stuffing, as bankruptcy plans must be voted on by creditors in proportion to their claims.
– An “ad hoc” group of creditors has called FTX’s attempt to claw back loans from its “criminal enterprise” unconscionable.
– Gemini and other creditors have previously opposed the deal with Digital Currency Group (DCG), Genesis’ parent company, and want Genesis stripped of monopoly rights to propose a wind-up plan.
Hot Take:
Genesis Global Capital is facing further challenges as creditors accuse the company of voter “manipulation” in its bankruptcy proceedings. The proposed deal with FTX has drawn criticism from other creditors, including Gemini, who argue that it is a perversion of the bankruptcy process. As the company seeks to wind up its affairs and return money to former customers, it faces increasing opposition and legal battles. The upcoming hearing on September 6th will determine the fate of the Genesis-FTX deal, and potentially shape the future of the bankruptcy process for the company.
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