Digital Currency Group (DCG), the parent company of Genesis Capital, has contested the settlement agreement reached with the New York Attorney General’s office, claiming violations of the Bankruptcy Code. The NYAG accused Genesis and its collaborators of defrauding investors for over $3 billion. DCG filed a court objection to the settlement, arguing that it allows value redistribution from lower classes to preferred creditors, violating the absolute priority rule. DCG also claims that the NYAG agreement circumvents the Bankruptcy Code and unfairly allocates the entire residual value of the Debtors’ estates to the NYAG and unsecured creditors. They argue that the proposed settlement is not fair, equitable, or in the estate’s best interests.
– DCG objects to settlement agreement with NYAG, citing violations of Bankruptcy Code
– Alleges value redistribution from lower classes to preferred creditors
– Claims proposed settlement circumvents Bankruptcy Code and is unfair to estate
– Argues that settlement violates absolute priority rule and provides recovery greater than Dollarized Value
DCG further argues that the bankruptcy plan developed by the Unsecured Creditors Committee and Ad Hoc Group disenfranchises equity interests and favors general unsecured creditors. They claim that their participation was excluded, violating the Debtors’ fiduciary duties and showing a lack of good faith. DCG also points out additional advantages granted to certain creditors, such as unrecognized post-petition interest rates and restrictions on DCG’s rights as an equity holder. They believe these provisions diminish their interests and contradict the Bankruptcy Code.
– DCG claims bankruptcy plan disenfranchises equity interests and favors unsecured creditors
– Alleges exclusion of participation violates fiduciary duties and lacks good faith
– Highlights additional advantages granted to certain creditors
– Argues provisions diminish their interests and contradict Bankruptcy Code
DCG urges the court to reject Genesis’ proposed bankruptcy plan and calls for a fair and equitable resolution that adheres to the requirements of the Bankruptcy Code. They clarify that they are not challenging the merits of the NYAG’s claims against Genesis but seek to ensure that the process respects the rights of all stakeholders and upholds the principles of the Bankruptcy Code.
– DCG calls for rejection of proposed bankruptcy plan and fair resolution
– Emphasizes not challenging NYAG’s claims but seeking process that respects stakeholders’ rights
– Seeks adherence to principles of Bankruptcy Code
In terms of market updates, the total cryptocurrency market capitalization currently stands at $1.89 trillion, with a marginal decrease of 0.20% in value over the past 24 hours. Bitcoin (BTC), the leading cryptocurrency, is trading at $50,800 with a dominant 52.88% market share.
– Total cryptocurrency market capitalization at $1.89 trillion with a slight decrease
– Bitcoin trading at $50,800 with dominant market share
In conclusion, Digital Currency Group has objected to the settlement agreement reached between Genesis Capital and the New York Attorney General’s office, citing violations of the Bankruptcy Code. They argue that the proposed settlement allows value redistribution and violates the absolute priority rule. DCG also claims that the bankruptcy plan favors unsecured creditors and diminishes their interests as an equity holder. They call for a fair and equitable resolution that adheres to the requirements of the Bankruptcy Code. Meanwhile, the cryptocurrency market shows a marginal decrease in value, with Bitcoin maintaining its dominant position.
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