Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
  • CASINO
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
  • CASINO
Crypto Flexs
Home»ADOPTION NEWS»DCG Challenges Genesis Capital’s Bankruptcy Plan for Overcompensation
ADOPTION NEWS

DCG Challenges Genesis Capital’s Bankruptcy Plan for Overcompensation

By Crypto FlexsFebruary 7, 20242 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
DCG Challenges Genesis Capital’s Bankruptcy Plan for Overcompensation
Share
Facebook Twitter LinkedIn Pinterest Email

DCG opposes Genesis Global Capital’s bankruptcy plan, citing legal violations and ethical concerns about asset valuation and creditor compensation in the volatile cryptocurrency market.

Digital Currency Group (DCG) expressed strong opposition to the bankruptcy plan proposed by its subsidiary Genesis Global Capital, arguing that it violates bankruptcy laws by intending to overcompensate customers. DCG’s main argument is that Genesis’ plan proposes paying customers and unsecured creditors significantly more than they are legally entitled to receive. It specifically criticizes plans to offer “additional payouts” based on the current value of digital assets such as Bitcoin and Ethereum. The value has risen since Genesis filed for bankruptcy in January 2023.​​​​.

DCG made it clear that it would support full repayment to creditors, but insisted that repayment should not exceed the value of the cryptocurrency assets at the time of filing for bankruptcy. The company highlights that the proposed plan unfairly benefits one group of creditors at the expense of others, including DCG, by providing for additional payments that reflect the current higher value of the digital assets rather than their value at the time of application. According to DCG, this approach not only violates U.S. bankruptcy law, but also deprives DCG of essential economic and corporate control.​​​.

Moreover, DCG’s opposition is rooted in broader concerns about the fair treatment of all creditors and compliance with legal standards within insolvency proceedings. The company filed a motion urging the court not to approve Genesis’ plan because it was illegal and lacked good faith in the restructuring process.

Genesis has been struggling to navigate financial difficulties following the 2022 cryptocurrency market downturn, which led it to file for bankruptcy in early 2023, owing more than $3.5 billion to its top creditors. The bankruptcy case was complicated by legal challenges, including a significant settlement with the U.S. Securities and Exchange Commission (SEC) and ongoing disputes with DCG and former business partner Gemini.

The dispute highlights the complex dynamics between parents and subsidiaries in the cryptocurrency sector, particularly in terms of bankruptcy and asset valuation. The result of this discrepancy could set a precedent for how cryptocurrency assets are valued and creditors compensated in future bankruptcy cases.

Image source: Shutterstock

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

As you challenge the mixed technology signal, OnDo Price Hovers challenges the August Bullish predictions.

August 7, 2025

XRP Open Interests decrease by $ 2.4B after recent sale

July 30, 2025

KAITO unveils Capital Launchpad, a Web3 crowdfunding platform that will be released later this week.

July 22, 2025
Add A Comment

Comments are closed.

Recent Posts

How Cloud Mining Becomes An Opportunity In The Mainstream Wave

August 12, 2025

Can Remittix be the successor of ADA? Experts have a 13,000% increase.

August 12, 2025

FLOKI’s Valhalla MMORPG Storms U.S. Television With 60-Day National Commercial Blitz

August 11, 2025

A Global Initiative To Transform Crypto Education From The Ground Up

August 11, 2025

Cango Inc. Acquires 50 MW Bitcoin Mining Facility In Georgia, Laying Groundwork For Future Energy Strategy

August 11, 2025

SIM Mining Cloud Mining Allows Global Investors To Easily Earn BTC And DOGE Profits Using Just Their Smartphones (daily Income Of $23,999 USD)

August 11, 2025

MultiBank Group Delivers Record H1 Results With $209M Revenue And MBG Token Driving 7X Returns Since Launch.

August 11, 2025

The Animoca brand invests in a nice cat

August 11, 2025

Is Alt Season finally here, just as Ether Lee’s tearing and a small cap follows?

August 11, 2025

Flareonix airdrop is live! Under the share of 100m FXP today!

August 11, 2025

Carv can be used for transactions!

August 10, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

How Cloud Mining Becomes An Opportunity In The Mainstream Wave

August 12, 2025

Can Remittix be the successor of ADA? Experts have a 13,000% increase.

August 12, 2025

FLOKI’s Valhalla MMORPG Storms U.S. Television With 60-Day National Commercial Blitz

August 11, 2025
Most Popular

Confirmation number 31 | Ethereum Foundation Blog

January 4, 2024

Ethereum project updates | Ethereum Foundation Blog

June 4, 2024

Is Solana ready to turn Ethereum upside down? Sygnum Bank thinks so

October 5, 2024
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.