On January 20, 2023, Genesis Capital filed for Chapter 11 bankruptcy. The company has been in a public dispute with the cryptocurrency exchange Gemini. Despite efforts toward reaching a comprehensive settlement, there appear to be some obstacles to its resolution.
However, the obstacles seem to be fading away as Digital Currency Group (DCG) communicated to the shareholders that it is narrowing down its efforts to reach an agreement to resolve the claims in the Genesis Chapter 11 Bankruptcy.
DCG expects a quick resolution to the bankruptcy
In addition to that, DCG also mentioned in the letter that was shared with the shareholders that they see the Genesis bankruptcy cases resolving soon.
In February, Genesis Capital submitted a comprehensive proposal to the bankruptcy court, outlining its plan for resolving the bankruptcy situation. The company had reached an “agreement in principle” with DCG and its creditors regarding the bankruptcy. According to the settlement details, Genesis creditors will receive an 80% recovery of the funds lost as a result of the bankruptcy. However, the settlement faced obstacles as creditors raised new demands.