Genesis Files for Mediator Assistance Over Amount of DCG Contribution to Reorganization
The move comes months after an initial agreement was reached between Genesis' creditors and its owner, DCG.
Crypto lender Genesis Global asked a court to appoint a mediator for its bankruptcy proceedings, court documents show. Digital Currency Group (DCG), Genesis' owner, said the move reflects the decision of a group of creditors to walk away from a preliminary agreement reached earlier this year.
Genesis said in a filing at the federal bankruptcy court for the Southern District of New York on Monday that it's seeking a mediator over "the amount, form, timing and other terms and conditions of DCG’s contribution to the debtors’ reorganization plan." DCG is also the parent company of CoinDesk.
The lending arm of Genesis halted withdrawals in November of last year in the wake of the FTX exchange's collapse, with Genesis filling for bankruptcy protection at the start of this year. In February a lawyer for Genesis said DCG intends to sell Genesis' crypto lending and trading platform as part of the bankruptcy proceedings.
In a tweet on Tuesday, DCG said the request reflects the decision of some of the creditors to walk away from the prior agreement. These creditors have raised all new demands, DCG said.
DCG further said the latest move will prolong the court process.
CORRECTION (April 25, 14:13 UTC): Corrects throughout that Genesis made the filing. An earlier version of this report said the filing was made by Genesis' creditors.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.