Genesis vs. DCG: resolving the conflict

A controversial contract. In the field of complex matters with many implications, Genesis file stands out as a textbook case. Bankruptcy registered in the nebula of Digital Currency Group (DCG). Two entities charged by the New York court in the context of a a case of fraud. And, indeed, the strategy used by these two characters is not an internally resolved issue. Well, the latest agreement between Genesis and the New York Attorney General not to the taste of his mother company.

Genesis reaches settlement with New York court (NYAG)

The The Genesis Company and the New York bankruptcy court (NYAG). reached an agreement in early February. The solution resulted from “in-depth negotiations between NYAG and the debtors. »With the aim of quickly resolving the accusations he allegedly defrauded his investorsas part of its activities as a crypto lender.

“The proposed settlement, among other benefits to the debtor’s estates, will resolve the action against NYAG, as well as affirm the claims filed by NYAG in these Chapter 11 cases, thereby eliminating the risk, expense and uncertainty associated with interim litigation.” tall (…) The payment agreement is for the benefit of the estates of the debtors and their creditors. »

NYAG

An interesting decision, on paper. But it is clear the parent company Digital Currency Group (DCG), of which Genesis was a subsidiary, does not see it that way. This is why he has described this contract as simple ” order of rebellion, was concluded at the last minute and in secret. »

The Digital Currency Group (DCG) condemns the agreement between Genesis and rights

In order indicator his dissatisfaction, the DCG company has the right file an objection to the bankruptcy court handling the Genesis case. However, this principle made it possible end the New York attorney general’s investigation on fraud and control of money laundering allegedly committed by its subsidiary.

In fact, DCG considers that this contract is nothing but ” an attempt to evade the law Bankruptcy of the United States. Because, according to his statements, Genesis “cannot, under the pretext of ‘solutions,’ take value from the lower class to redistribute it to the privileged creditors, contrary to absolute priority.” »

The longer the file goes, the more simple things appear. Even more if the parent company Digital Currency Group (DCG) to decide against all settlements made by its branches. still, an agreement had already been reached to pay users of the Earn serviceof the platform Gemini…he is also involved in this legal imbroglio. Case to follow.