Digital Currency Group (DCG) is the parent company of Genesis Capital. Refused involvement in Genesis’ bankruptcy filing in a Jan. 20 statement. According to DCG, a special committee of independent directors recommended and decided to file for Chapter 11 bankruptcy protection.
Filing for Chapter 11 will allow Genesis to try to restructure debts, assets and other business activities. The company estimated liabilities of $1 billion to $10 billion, with assets in the same range. The DCG said in a statement:
“Genesis has its own independent management team, legal advisors, and financial advisors, and has appointed a special committee of independent directors, who are in charge of the restructuring of Genesis Capital, and who recommended and decided that Genesis Capital File Chapter 11. Neither DCG nor any of its employees, including those who sit on the Genesis board of directors, were involved in the decision to file for bankruptcy.”
Only the Genesis credit entities (Genesis Global Holdco, Genesis Global Capital, and Genesis Asia Pacific – collectively known as “Genesis Capital”) have filed for bankruptcy protection. Genesis Global Trading and Genesis’ spot and derivatives trading entities will remain operational.
DCG Statement on Genesis Capital Chapter 11 Bankruptcy Filing: https://t.co/6SsWj4zo3R pic.twitter.com/j9e8R3mMZv
— Digital Currency Group (@DCGco) January 20, 2023
Related: CryptoBuzz: DCG’s ‘Carefully Crafted Campaign of Lies’?
DCG said it plans to continue operations as usual, according to the statement, along with its other subsidiaries, including Grayscale Investments, Foundry Digital, Leno Group Holdings, CoinDesk, and TradeBlock Corporation.
In a letter to shareholders on Jan. 17, DCG confirmed that it “owes $526 million due in May 2023 and $1.1 billion under the promissory note due June 2032.” The company noted that it intends to meet Genesis Capital’s obligations during the restructuring. Also the letter Announced suspension of quarterly dividend. Payment to preserve liquidity, Cointelegraph reported.
Genesis’ problems became apparent after it halted withdrawals in November, which it blamed.Unprecedented turmoil in the market”which followed the collapse of FTX. The company later revealed $175 million was trapped in an FTX account. The halted withdrawals affected clients of crypto exchange Gemini, prompting a call to DCG’s board. Remove Barry Silbert as CEO. of the firm.
#DCG #Genesis #bankruptcy #filing #decided #independent #committee