Gemini

Bitcoin

Read

A representative for the U.S. government has voiced concerns over recent amendments made by<a href="https://coingape.com/genesis-bankruptcy-proceedings-may-be-prolonged-heres-why/" rel="noopener noreferrer nofollow"> Genesis in their bankruptcy</a> proceedings. William Harrington, serving the Department of Justice, has identified substantial modifications to the terms previously agreed upon by the debtors in their restructuring plan.
Harrington’s primary contention hinges on overhauling the sale strategy initially proposed. He notes the original discharge language has been scrapped, with Genesis retracting their intent to pursue an asset sale. This pivot, according to the trustee, necessitates a fresh disclosure statement and a prolonged notice period to allow creditors due process.
<h2 id="strong-genesis-disclosure-lacks-creditor-details-strong">Genesis Disclosure Lacks Creditor Details</h2>
Moreover, the trustee has questioned the level of detail in the revised disclosure, specifically the need for more clarity around creditor distributions. Harrington argues that the amended document needs to outline the expected dividends and the timelines for creditor compensation. This omission is a critical concern for those invested in the outcome of the bankruptcy resolution.
The backdrop to this legal scrutiny is Genesis’s bankruptcy filing in January, a repercussion of the <a href="https://coingape.com/blog/is-ftx-crash-an-end-of-crypto-how-this-debacle-unfolded/" rel="noopener noreferrer nofollow">FTX collapse</a>. A preliminary <a href="https://coingape.com/ftx-seeks-settlement-agreement-with-genesis-for-just-176-million/" rel="noopener noreferrer nofollow">agreement between Genesis</a> and Gemini in August had proposed a recovery of 70-90% for unsecured creditors, a deal now shadowed by legal confrontations.
<h2 id="strong-gemini-sues-genesis-over-collateral-shortfall-strong">Gemini Sues Genesis Over Collateral Shortfall</h2>
Additionally, the trustee’s objection surfaces amidst a web of legal disputes involving Genesis, its parent company, Digital Currency Group, and Gemini. A recent<a href="https://coingape.com/breaking-gemini-sues-genesis-over-1-6b-bitcoin-trust-shares/" rel="noopener noreferrer nofollow"> lawsuit filed by Gemini accuses Genesis</a> of failing to honor a $1.6 billion obligation in GBTC shares promised as collateral in the Gemini Earn program. The New York Attorney General’s allegations, emerging in October, accuse the Gemini Earn program of operating as an unregistered securities offering, further entangling the legal situation.
Trustee Harrington has requested a 28-day notice period, a significant demand to guarantee creditors sufficient time to review and vote on the revised disclosure. This action marks a concerted effort to foster transparency and fairness in the bankruptcy proceedings, emphasizing the trustee’s commitment to protecting creditor interests.
Read Also: <a href="https://coingape.com/dormant-bitcoin-whales-move-6500-btc-worth-230m/" rel="noopener noreferrer nofollow">Dormant Bitcoin Whales Move 6,500 BTC Worth $230M</a>
The post <a rel="noopener noreferrer nofollow" href="https://coingape.com/breaking-doj-trustee-questions-genesis-plan-changes/">Breaking: DOJ Trustee Questions Genesis Plan Changes</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://coingape.com">CoinGape</a>.

Breaking: DOJ Trustee Questions Genesis Plan Changes

Table of Contents

Coingape News Media

Other articles published on Nov 2, 2023

Chiliz Debuts SportFi Platform with 25 Premier Collaborations: Pioneering the Next Wave of Sports...

Solana (SOL) Records 14-Month High with Firedancer Testnet Launch

Axie Infinity developer brings Japanese Web2 games to Ronin

UK National Crime Agency forms specialized cryptocurrency team with new hires

Binance Announces Listing of 10 New Trading Pairs

Ethereum at $2,000 a ‘few weeks away,’ says expert

Join our free newsletter for daily crypto updates!