Creditors Request Mediator for Genesis Global Bankruptcy Proceedings
Creditors of Genesis Global, the bankrupt crypto lender, have requested a mediator be appointed to handle the case. According to court documents, a group of creditors who entered into a preliminary agreement with the company’s owner, Digital Currency Group (DCG), have now voted to break away from it. The decision comes as they evaluate the proposed amount, form, timing, and other terms and conditions of DCG’s contribution to the debtors’ reorganization plan. Genesis Global filed for bankruptcy at the beginning of this year after ceasing its withdrawal services last November, following the collapse of FTX. Meanwhile, DCG, which owns CoinDesk, intends to sell Genesis’ crypto lending and trading platform as part of the process. DCG has responded to the creditors’ decision implying that new demands could prolong the bankruptcy court proceedings.
[h/t Parikshit Mishra]