Creditors Oppose Proposed Settlement Deal in Genesis Bankruptcy Case
Creditors of crypto lender Genesis and the Digital Currency Group (DCG) have raised objections to a proposed settlement deal, accusing it of voter manipulation.
Main Breakdowns:
- Creditors, including Gemini, criticize the proposed deal as an attempt to manipulate the bankruptcy process in favor of a specific group of creditors.
- The new deal allows Alameda Research to claim $175 million from Genesis assets, a significant reduction from the $4 billion initially claimed.
- Gemini argues that the proposed settlement is a “sweetheart pre-plan deal” and cannot pass at face value.
- Another group of creditors, known as Fair Deal Group, claims the settlement is an attempt to gain the support and votes of FTX creditors.
- A third group of creditors, including FTX, criticizes the proposal, calling it unconscionable and a desperate attempt to recover loans.
Genesis Supports the Deal
Despite the opposition, Genesis backs the proposed settlement as fair and a way to resolve the bankruptcy case without extensive litigation costs. The deal involves Alameda Research claiming $175 million and Gemini releasing $226 million against FTX.
Hot Take
The proposed settlement deal in the Genesis bankruptcy case is facing significant opposition from creditors. Accusations of voter manipulation and attempts to please specific creditors have emerged, creating controversy around the deal. While Genesis supports the settlement, it remains to be seen how the bankruptcy case will ultimately unfold.
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