A lawyer for bankrupt crypto-lending firm Genesis is optimistic that the firm can resolve its creditors’ disputes as early as this week and that the company can emerge from Chapter 11 proceedings by the end of May.
Sean O’Neill, a lawyer for Genesis, made the comments at a preliminary hearing on Jan. 23 in the United States Bankruptcy Court for the Southern District of New York, according to Reuters. Reports.
He added that Genesis had “some confidence” it would resolve the dispute with creditors by the end of the week and seek a judge to arbitrate if necessary, but said:
“Sitting here right now, I don’t think we’re going to need a mediator. I’m very optimistic.”
birth Filed for Chapter 11 bankruptcy January 19
The bankruptcy comes nearly two months after Genesis suspended withdrawals in November 2022, citing market turmoil caused by the bankruptcy of crypto exchange FTX.
A series of “day one” motions, standard in bankruptcy proceedings, were granted to Genesis by Judge Sean Lane, including allowing the firm to pay employees and vendors.
Lane added that Genesis was not required to disclose the names of customers on its list of creditors, citing privacy concerns. Lane even suggested that the lender warn consumers about potential phishing scams if the names are later made public.
Genesis said it will sell its assets at auction on May 19 with plans to exit bankruptcy within a few months.
Related: BlockFi exec argues bankruptcy court should approve bonuses to retain talent
It reported assets and liabilities of just over $5 billion and owed 100,000 creditors. At least $3.4 billion. The suspension of Genesis returns last year Affected users Administered a yield product called “Earn” from Gemini Exchange.
Gemini is Genesis’ largest creditor and is owed about $766 million.
Its biggest debtor was its parent company, Digital Currency Group (DCG), which owed Genesis about $1.65 billion, including a $575 million loan due in May and a $1.1 million loan over 10 years. The promissory note is being completed.
Although there is a DCG. Face your financial problems – DCG was not involved in the bankruptcy. Similarly, Genesis entities handling derivatives, spot trading, broker-dealers and custody are not part of this process and continue to operate in accordance with Genesis.
#Genesis #speedy #resolution #creditor #disputes #bankruptcy #exits