Genesis Global Capital’s lawyers are confident about resolving their disputes with creditors this week, with the stated goal of emerging from Chapter 11 by the end of May, according to a report from Reuters.
See related article: Genesis’s trading arm moving funds on blockchain, bankrupt units reveal extent of liabilities
Fast facts
- At the initial hearing in Manhattan following Genesis’s filing for bankruptcy protection on Jan. 19, Sean O’Neal, a lawyer for Genesis, said the company had “some measure of confidence” it would resolve its disputes with creditors this week.
- “I don’t think we’re going to need a mediator… I’m very much an optimist,” said O’Neal, citing two months of negotiations. However, the lawyer said the team would seek mediation if necessary.
- Genesis and two of its lending units filed for bankruptcy protection two months after it froze customer withdrawals following the collapse of Sam Bankman-Fried’s FTX exchange. Genesis joined the crypto lenders Celsius Network, Voyager Digital, and BlockFi as bankrupt victims of the FTX contagion.
- Brian Rosen, a lawyer for Genesis’s creditors that hold US$1.5 billion of claims, said at the hearing that “we are getting closer” to an agreement.
- Barry Silbert’s venture capital firm Digital Currency Group, which owns Genesis, is not included in the bankruptcy. The parent company also owns the asset manager Grayscale and the crypto news outlet CoinDesk.
- Genesis representatives have said they plan to sell various assets in an auction, with US$5.1 billion of assets and liabilities and at least US$3.5 billion owed to the company’s top 50 creditors.
See related article: Genesis, Gemini face US charges over unregistered securities sales
