June 19, 2024

Genesis Investor Indemnity Plan Derailed by New Claims from Creditors

Article Reading Time:
1 min.

Genesis Investor Indemnity Plan Derailed by New Claims from Creditors

According to Genesis Capital, a group of the company's creditors disavowed previously reached agreements and abandoned their old claims, putting forward new demands.

In accordance with the compensation plan,previously agreed to by the Genesis Capital bankruptcy court, the injured party was to receive compensation equal to 80% of the funds lost due to bankruptcy. However, the execution of the court-approved compensation plan was disrupted due to new claims put forward by a group of Genesis investors.

"More than two months afterAll parties agreed to the settlement and approved the decision in bankruptcy court, a group of Genesis Capital creditors waived their claims and put forward new ones. It is difficult for us to understand the rationale for these actions, given the limited participation of the parties in court hearings,” Genesis representatives said.

The crypto-lender assures that the task of quickly andfair resolution of disputes of all interested parties remains a priority. However, the Genesis administration finds it difficult to predict the timing and amount of compensation due to the protracted legal process.

“We don’t know to what extent other creditorsaware of such developments. This will undoubtedly delay the legal process, since we will have to compare the new demands with the concessions that we made earlier,” Genesis commented on the unspecified new demands.   

Earlier, the cryptocurrency conglomerate Digital Currency Group (DCG) reported
about the results for 2022. The report called the year difficult, and the company's total loss amounted to about $1.1 billion.