The Digital Currency Group (DCG) has raised objections against Genesis’ bankruptcy strategy, emphasizing a contentious issue regarding how assets are valued.

DCG has officially challenged the bankruptcy plan of its subsidiary, Genesis Global Capital, voicing serious concerns over how asset values are determined. In a statement issued late on Monday, DCG articulated that the plan to allocate additional funds to customers could exceed what is legally permissible. bankruptcy plan This disagreement mainly revolves around how digital assets are valued, with DCG preferring to base repayments on their values as of January 2023, coinciding with the bankruptcy filing of Genesis. In contrast, Genesis is advocating for a reevaluation that considers the increasing prices of assets like Bitcoin and Ethereum since that date, a move DCG argues is against U.S. bankruptcy regulations. Genesis In light of unresolved disputes with DCG, its former partner Gemini, and regulatory entities, Genesis Global Capital has begun liquidating its assets.

Prior to filing for bankruptcy, the Securities and Exchange Commission (SEC) initiated litigation against Genesis, alleging it engaged in unauthorized sales of securities through a common venture.

Gemini Backs Genesis Bankruptcy Plan

Gemini, the prominent cryptocurrency exchange co-founded by the Winklevoss twins, has voiced its support for Genesis’ bankruptcy plan, asserting that it presents a feasible solution for recompensing customers who have been unable to access their assets for more than 16 months. crypto  lending program Gemini Earn.

The current court proceedings mirror a recent legal ruling in the Chapter 11 case involving FTX, where U.S. Bankruptcy Judge John Dorsey ruled that customer claims should be calculated based on cryptocurrency prices from November 2022, despite customer objections, thereby enforcing the explicit guidelines set forth by U.S. bankruptcy law.

The ongoing conflict between DCG and Genesis Global Capital highlights the complex legal and financial challenges that characterize cryptocurrency-related bankruptcies. As regulatory scrutiny intensifies in this rapidly evolving domain, the resolution of this conflict is likely to have significant implications for all parties involved.

This clash over asset valuation in  bankruptcy Please be advised that the information provided on this page is not designed to be and should not be construed as legal, tax, investment, financial, or any other type of advice. It's essential to only invest what you can afford to lose and seek independent financial guidance if you're uncertain. For more information, we recommend reviewing the terms and conditions and support resources offered by the issuer or advertiser. MetaversePost is dedicated to accurate and unbiased reporting, but please note that market conditions can change unexpectedly.

Kumar, an experienced tech journalist, focuses on the dynamic intersections of AI/ML, marketing tech, and emerging areas like crypto, blockchain, and NFTs. With over three years of industry experience, Kumar has honed a strong ability to craft engaging narratives, conduct informative interviews, and deliver in-depth analyses. His expertise lies in creating impactful content, including articles, reports, and research pieces for leading industry platforms. With a unique blend of technical knowledge and storytelling finesse, Kumar excels at conveying complex technological concepts in a clear and captivating manner to varied audiences. crypto  ecosystem.