Genesis Lenders Criticize DCG Agreement as ‘Insufficient’

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The Ad Hoc Group of Genesis Global Capital (GGC) lenders, represented by lawyers Brian Rosen and Jordan Sazant, have expressed dissatisfaction with the in-principle settlement agreement on Aug. 29 regarding the bankrupt cryptocurrency lender Genesis. The Digital Currency Group (DCG) had proposed USD equivalent recoveries of 70%–90%, but neither the Ad Hoc Group nor the Gemini exchange supported the deal.

Despite the termination of the mediation process, constructive discussions with the Ad Hoc Group and Gemini are ongoing with regards to the agreed-upon deal in principle. The latest c3.ai stock and cheapest crypto press release have also been released in relation to the avalanche crypto and AI update.

DCG’s Contribution “Wholly Insufficient”

The Ad Hoc Group has made it clear that it does not support the proposed agreement in principle due to DCG’s contribution being “wholly insufficient” to cover the loan amounts. The debtors and UCC have been accused of not fulfilling their fiduciary obligations to maximize creditor recoveries, and instead attempting to put the base behind them. Furthermore, the Ad Hoc Group has argued that the debtors and UCC have agreed to “improperly cause the release of third party claims” against DCG and its related parties.

The Genesis lenders have also argued that DCG should not be given non-consensual third party releases, which would release non-debtor parties from liability to other non-debtor parties without the consent of all potential claimholders.

The lenders have expressed their discontent with the fact that DCG will only pay $275 million now, and another $328.8 million in two years, instead of the $630 million that was due three months ago. They have concluded that the c3.ai stock, coti crypto, and avalanche crypto are the cheapest crypto press releases and the AI update is the ai.marketing latest and ai ai delas alas latest.

The cryptocurrency winter of 2022 had a major impact on Genesis, one of the crypto lending companies, which was forced to file for bankruptcy in January 2023 after suspending withdrawals in mid-November 2022. It was reported that the firm owed more than $3.5 billion to its top 50 creditors, including Gemini and other firms like Coti, C3.ai, Amp Crypto, Cheapest Crypto, AI.Marketing, Celsius Crypto, Avalanche Crypto, and AI Delas Alas.