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Home ┬╗ Crypto lending platform Genesis filed for bankruptcy protection

Crypto lending platform Genesis filed for bankruptcy protection

Crypto lending platform Genesis filed for bankruptcy protection
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Crypto lending platform Genesis recently filed for bankruptcy protection and is optimistic about resolving creditor disputes. Genesis is owned by Digital Currency Group (DCG), which itself is heavily in debt. Therefore, it is difficult to say how they plan to resolve disputes with creditors. A company lawyer said Genesis plans to settle disputes with its creditors this week.

Genesis filed for security from its creditors. This will give them some time to save the platform from sudden collapse. He is in talks with the creditors for about 2 months and will mediate if needed.

Genesis attorney Sean O’Neill is positive they won’t need an arbitrator, and he’s optimistic. The bankruptcy judge in the case has ordered Origin to pay its employees and critical vendors in “day one” motions. Genesis was also told not to make the names of its customers public in order to protect against phishing scams.

Plans to exit bankruptcy

Genesis plans to exit bankruptcy by May 19 after selling off its assets and paying off its creditors. DCG, the parent company of Genesis, is also heavily in debt with Genesis at $1.7 billion. However, the bankruptcy filing does not include its parent company DCG nor its derivatives, spot and brokerage businesses. The company is estimated to total $5 billion in assets and liabilities, with at least $3.4 billion owed to 100k creditors.

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