In a Jan. 20 assertion, Genesis Capital’s mum or dad firm, Digital Foreign money Group (DCG), denied involvement in Genesis’ chapter submitting. In keeping with DCG, a particular committee of impartial administrators beneficial and determined to file for Chapter 11 chapter safety.
Submitting for Chapter 11 will permit Genesis to hunt the reorganization of money owed, belongings and different enterprise actions. The corporate estimated liabilities of $1 billion to $10 billion, together with belongings in the identical vary. DCG famous within the assertion:
“Genesis has its personal impartial administration group, authorized counsel, and monetary advisors, and appointed a particular committee of impartial administrators, who’re accountable for the Genesis Capital restructuring, and who beneficial and determined that Genesis Capital file chapter 11. Neither DCG nor any of its staff, together with those that sit on the Genesis board of administrators, had been concerned within the choice to file for chapter.”
Solely Genesis’ lending entities — Genesis International Holdco, Genesis International Capital and Genesis Asia Pacific, collectively often known as Genesis Capital — have filed for chapter safety. Genesis International Buying and selling and Genesis’ spot and derivatives buying and selling entity will stay operational.
DCG Assertion on Genesis Capital Chapter 11 Chapter Submitting: https://t.co/6SsWj4zo3R pic.twitter.com/j9e8R3mMZv
— Digital Foreign money Group (@DCGco) January 20, 2023
Associated: Crypto Biz: DCG’s ‘rigorously crafted marketing campaign of lies’?
DCG mentioned it intends to proceed to function as typical, together with its different subsidiaries, together with Grayscale Investments, Foundry Digital, Lino Group Holdings, CoinDesk and TradeBlock Company.
In a letter despatched to shareholders on Jan. 17, DCG confirmed it owes “$526 million due in Might 2023 and $1.1 billion beneath a promissory observe due in June 2032.” The corporate famous that it intends to handle obligations to Genesis Capital in the middle of restructuring. The letter additionally introduced a halt to quarterly dividend funds to protect liquidity, Cointelegraph reported.
Genesis’ issues turned obvious after the withdrawal halt in November, which it blamed on the “unprecedented market turmoil” that adopted the collapse of FTX. The corporate later disclosed it had $175 million caught in an FTX account. The withdrawal halt affected shoppers’ of Gemini and prompted requires DCG’s board to take away Barry Silbert as CEO.
https://cointelegraph.com/information/genesis-bankruptcy-filing-was-decided-by-independent-committee-according-to-dcg