Digital Currency Group Opposes Genesis Global Settlement
Digital Currency Group (DCG) has expressed its opposition to the settlement agreement reached between the New York Attorney General (NYAG) and Genesis Global, a cryptocurrency lender that recently filed for bankruptcy. DCG, the parent company of Genesis, argues that the agreement does not follow proper legal processes and diverts value to preferred creditors, bypassing established bankruptcy procedures.
DCG’s objection raises concerns about the settlement’s compliance with US bankruptcy law and suggests that it may be an attempt to circumvent the legal procedure. The company believes that the settlement was hastily and secretly created, compromising the principles of justice and fairness.
DFS Accuses DCG and Gemini
The controversy surrounding the Genesis settlement is just one of many legal challenges faced by Genesis and its parent company, DCG. Prior to this, Genesis agreed to pay an $8 million fine imposed by the Department of Financial Services of New York (DFS) for surrendering its New York BitLicense. The DFS has now expanded its allegations against DCG and Gemini, another affiliate, accusing them of causing investor losses amounting to $3 billion.
The accusations are related to the Gemini Earn program, which has been under scrutiny by state regulators. These legal actions highlight the evolving regulatory landscape in the cryptocurrency market and demonstrate increased regulatory attention on these entities.
Genesis Capital Bankruptcy Plan Faces Objections
DCG has also raised objections to Genesis Capital’s proposed bankruptcy plan. The company argues that the plan does not adhere to standard bankruptcy procedures, which require equal treatment for all creditors. DCG contends that the proposed plan unfairly favors certain creditors at the expense of others, including itself, thus violating the Bankruptcy Code.
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