{"id":16438,"date":"2023-01-22T23:47:25","date_gmt":"2023-01-22T23:47:25","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/genesis-bankruptcy-filing-was-decided-by-independent-committee-according-to-dcg\/"},"modified":"2023-01-22T23:47:27","modified_gmt":"2023-01-22T23:47:27","slug":"genesis-bankruptcy-filing-was-decided-by-independent-committee-according-to-dcg","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/genesis-bankruptcy-filing-was-decided-by-independent-committee-according-to-dcg\/","title":{"rendered":"Genesis\u2019 bankruptcy filing was decided by independent committee, according to DCG"},"content":{"rendered":"

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In a Jan. 20 statement, Genesis Capital\u2019s parent company, Digital Currency Group (DCG),\u00a0denied\u00a0involvement in Genesis\u2019 bankruptcy filing. According to DCG, a special committee of independent directors recommended and decided to file for Chapter 11 bankruptcy protection.\u00a0<\/p>\n

Filing for Chapter 11 will allow Genesis to seek the reorganization of debts, assets and other business activities. The company estimated liabilities of $1 billion to $10 billion, along with assets in the same range. DCG noted in the statement:<\/p>\n

\u201cGenesis has its own independent management team, legal counsel, and financial advisors, and appointed a special committee of independent directors, who are in charge of the Genesis Capital restructuring, and who recommended and decided that Genesis Capital file chapter 11. Neither DCG nor any of its employees, including those who sit on the Genesis board of directors, were involved in the decision to file for bankruptcy.\u201d<\/p><\/blockquote>\n

Only Genesis\u2019 lending entities \u2014 Genesis Global Holdco, Genesis Global Capital and Genesis Asia Pacific, collectively known as Genesis Capital \u2014 have filed for bankruptcy protection. Genesis Global Trading and Genesis\u2019 spot and derivatives trading entity will remain operational.<\/p>\n

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DCG Statement on Genesis Capital Chapter 11 Bankruptcy Filing: https:\/\/t.co\/6SsWj4zo3R pic.twitter.com\/j9e8R3mMZv<\/a><\/p>\n

\u2014 Digital Currency Group (@DCGco) January 20, 2023<\/a><\/p><\/blockquote>\n

Related: <\/strong>Crypto Biz: DCG\u2019s \u2018carefully crafted campaign of lies\u2019?<\/strong><\/em><\/p>\n

DCG said it intends to continue to operate as usual, along with its other subsidiaries, including Grayscale Investments, Foundry Digital, Lino Group Holdings, CoinDesk and TradeBlock Corporation. <\/p>\n

In a letter sent to shareholders on Jan. 17, DCG confirmed it owes \u201c$526 million due in May 2023 and $1.1 billion under a promissory note due in June 2032.\u201d The company noted that it intends to address obligations to Genesis Capital in the course of restructuring. The letter also\u00a0announced a halt to quarterly dividend payments to preserve liquidity, Cointelegraph reported. <\/p>\n

Genesis\u2019 problems became apparent after the withdrawal halt in November, which it blamed on the \u201cunprecedented market turmoil\u201d that followed the collapse of FTX. The company later disclosed it had $175 million stuck in an FTX account. The withdrawal halt affected clients\u2019 of Gemini and prompted calls for DCG\u2019s board to\u00a0remove Barry Silbert as CEO.<\/p>\n<\/div>\n