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 Barry Silbert’s Digital Currency Group (DCG) has <a rel="noopener noreferrer nofollow" title="object" href="https://thebittimes.com/tag/object.html">object</a>ed to the bankruptcy plan of its subsidiary Genesis Global Capital because it wants to pay back a group of controlling <a rel="noopener noreferrer nofollow" title="creditors" href="https://thebittimes.com/tag/creditors.html">creditors</a> more than required.
 In a motion filed on Monday, DCG has said Genesis’ bankruptcy plan is unlawful, inequitable, and violates its rights.
 Under bankruptcy law, <a rel="noopener noreferrer nofollow" title="payouts" href="https://thebittimes.com/tag/payouts.html">payouts</a> of digital assets are determined by price at the time the firm officially went under. <a rel="noopener noreferrer nofollow" title="Bitcoin" href="https://thebittimes.com/tag/bitcoin.html">Bitcoin</a>, for example, was worth $21,000 when Genesis filed for bankruptcy on January 20, 2023.
 At press time, however, bitcoin has appreciated by a whopping 105%, to over $43,000. Genesis has proposed to give “hundreds of millions of dollars more” to its general unsecured creditors in order to reflect this price change.
 <figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="576" src="https://cdn.thebittimes.com/images/2024/02/06/80b78c3b31f66444516e6ddbaceb34c5.webp" alt class="wp-image-60126" srcset="https://cdn.thebittimes.com/images/2024/02/06/80b78c3b31f66444516e6ddbaceb34c5.webp 1024w, https://cdn.thebittimes.com/images/2024/02/06/80b78c3b31f66444516e6ddbaceb34c5.webp 300w, https://cdn.thebittimes.com/images/2024/02/06/80b78c3b31f66444516e6ddbaceb34c5.webp 768w, https://cdn.thebittimes.com/images/2024/02/06/80b78c3b31f66444516e6ddbaceb34c5.webp 1536w, https://cdn.thebittimes.com/images/2024/02/06/80b78c3b31f66444516e6ddbaceb34c5.webp 1200w, https://cdn.thebittimes.com/images/2024/02/06/80b78c3b31f66444516e6ddbaceb34c5.webp 2048w" sizes="(max-width: 1024px) 100vw, 1024px">
 <figcaption class="wp-element-caption">
 Bitcoin’s recent price gains have also caused FTX creditors to object to far lower payouts.
 </figcaption>
 </figure>
 Read more: Genesis eyeing tax benefits after blocking DCG sale
 According to DCG, paying extra to a small group of premium customers is a violation of the bankruptcy code, displays “bad faith,” and, perhaps most telling, cuts into its own potential payouts.
 What’s more, Genesis is accused of repeatedly withholding the names of these creditors and the exact figures of their payouts.
 “If implemented as the Debtors intend, the Setoff Principles would provide a select group of only twenty-one <a rel="noopener noreferrer nofollow" title="creditors" href="https://thebittimes.com/tag/creditors.html">creditors</a>—presently unknown to the public due to the Debtors’ extensive redactions—with a collective windfall of [REDACTED] of additional claims, with one <a rel="noopener noreferrer nofollow" title="creditor" href="https://thebittimes.com/tag/creditor.html">creditor</a> to receive [REDACTED] of additional claims prohibited by law.
 “The Court should not sanction this result,” DCG said.
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Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/dcg-objects-to-extra-payouts-for-special-genesis-creditors-tbt79069.html">https://thebittimes.com/dcg-objects-to-extra-payouts-for-special-genesis-creditors-tbt79069.html</a>

DCG objects to extra payouts for special Genesis creditors

TheBitTimes

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