Genesis' bankruptcy filing was decided by independent committee according to DCG

Genesis Capital's genitor institution Digital Currency Group (DCG) denied involvement successful Genesis' bankruptcy filing successful a connection connected Jan. 20. According to DCG, a peculiar committee of autarkic directors recommended and decided to record for Chapter 11 bankruptcy protection. 

Filing for Chapter 11 volition let Genesis to question the reorganization of debts, assets and different concern activities. The institution estimated liabilities of $1 cardinal to $10 billion, on with assets successful the aforesaid range. DCG noted successful the connection that:

"Genesis has its ain autarkic absorption team, ineligible counsel, and fiscal advisors, and appointed a peculiar committee of autarkic directors, who are successful complaint of the Genesis Capital restructuring, and who recommended and decided that Genesis Capital record section 11. Neither DCG nor immoderate of its employees, including those who beryllium connected the Genesis committee of directors, were progressive successful the determination to record for bankruptcy."

Only Genesis lending entities (Genesis Global Holdco, Genesis Global Capital, and Genesis Asia Pacific - collectively known arsenic “Genesis Capital”) person filed for bankruptcy protection. Genesis Global Trading and Genesis’ spot and derivatives trading entity volition stay operational.

DCG Statement connected Genesis Capital Chapter 11 Bankruptcy Filing: https://t.co/6SsWj4zo3R pic.twitter.com/j9e8R3mMZv

— Digital Currency Group (@DCGco) January 20, 2023

Related: Crypto Biz: DCG’s ‘carefully crafted run of lies’?

DCG said it intends proceed to run arsenic usual, arsenic per the statement, on with its different subsidiaries, including Grayscale Investments, Foundry Digital, Lino Group Holdings, CoinDesk, and TradeBlock Corporation.

In a missive sent to shareholders connected Jan. 17, DCG confirmed it owes "$526 cardinal owed successful May 2023 and $1.1 cardinal nether a promissory enactment owed successful June 2032." The institution noted that it intends to code obligations to Genesis Capital successful the people of a restructuring. The missive also announced a halt to quarterly dividend payments to sphere liquidity, Cointelegraph reported.

Genesis' problems became evident aft the withdrawal halt successful November, which it blamed connected "unprecedented marketplace turmoil" that followed the illness of FTX. The institution aboriginal disclosed to person $175 cardinal stuck successful a FTX account. The withdrawal halt affected clients' of the crypto speech Gemini, and prompted calls for DCG's committee to region Barry Silbert arsenic CEO of the firm.