Creditors Accuse Crypto Lender Genesis of Vote Buying as Bankruptcy Proceedings Continue Creditors of crypto lender Genesis and its parent company the Digital Currency Group
(DCG) have opposed a proposed settlement deal leveling accusations of voter manipulation.
According to a filing on Aug. 31,
creditors including digital asset exchange Gemini have criticized the proposal as an attempt to “manipulate” the bankruptcy procedure to favour
a group of creditors.
This year,
Genesis Global Capital filed for Chapter 11 with liabilities hitting at least $3.4 billion and after months of litigation and uncertainty, a new agreement faces another
round of controversy.
The new deal
will allow FTX's sister company Alameda Research to claim $175 million from Genesis assets, a significant drop
from the $4 billion claimed.
The major argument by another group of creditors known
as Fair Deal Group is that the settlement seeks to please FTX creditors to get their votes as bankruptcy claims are
voted in proportion to assets in the failed entity.
