June 6, 2023

Genesis Investor Indemnity Plan Derailed by New Claims from Creditors

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Genesis Investor Indemnity Plan Derailed by New Claims from Creditors

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

In accordance with the indemnity plan, previouslyagreed in the bankruptcy court of Genesis Capital, the injured party was to receive compensation in the amount of 80% of the funds lost due to bankruptcy. However, a court-approved damages plan is thwarted by new claims filed by a group of Genesis investors.

“More than two months after allthe parties agreed to a settlement and approved the decision in bankruptcy court, the Genesis Capital group of 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 said.

The cryptolender assures that the task of fast andfair settlement of disputes of all interested parties remains a priority. Nevertheless, the administration of Genesis finds it difficult to predict the timing and amount of compensation in connection with the protracted lawsuit.

“We do not know how other creditorsaware of this development. This will undoubtedly delay the litigation as we will have to balance the new claims against the concessions we made earlier,” Genesis commented on the unspecified new claims.

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.