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You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/genesis-bankruptcy-saga-payments-and-legal-challenges/" data-wpel-link="internal">Genesis Bankruptcy Saga: Payments and Legal Challenges</a> 
One of the biggest supporters of the last bull season was the crypto lending mechanism, and it also became the cause of the market crash. Crypto lenders were working with high-risk customers, and exchanges like Gemini were working with Genesis, which had high-risk customers, to provide stake income to their clients. Following the collapse of 3AC and others, the crypto lending story ended, and major market makers were pushed out. 
<h2 style="text-align: justify" id="genesis-payment-objections">Genesis Payment Objections</h2> 
One of the worst developments at the beginning of 2023 was Genesis’s official bankruptcy filing. Fortunately, by the end of the year, the approval of the Spot <a href="https://en.coin-turk.com/understanding-the-recent-bitcoin-price-drop/" data-wpel-link="internal">Bitcoin</a> ETF became largely certain, and DCG found the necessary capital to pay off its debts to its subsidiary. Thus, Genesis began to send out the <a href="https://newslinker.co/category/finance/" data-wpel-link="exclude">money</a> it owed to its creditors. 
<img loading="lazy" loading="lazy" decoding="async" class="wp-image-311867 aligncenter" src="https://coin-turk.com/wp-content/uploads/2024/02/Genesis-Iflas-Odemeleri.png" alt="" width="858" height="459"> 
However, there is a problem here. On February 5, DCG submitted a petition objecting to the bankruptcy plan, writing that it proposed its subsidiary make more payments than necessary; 
<blockquote> 
 “DCG will support a plan that pays creditors one hundred cents on the dollar, and the properties currently have sufficient assets to do so.” 
</blockquote> 
The parent company is violating the bankruptcy issue because this overpaid balance “favors a small group of creditors disproportionately over others.” 
<blockquote> 
 “Moreover, by depriving DCG of other valuable economic and corporate governance rights, it further violates the Bankruptcy Code and demonstrates a lack of good faith. DCG cannot support such a plan, and the court should not approve it.” 
</blockquote> 
<h2 style="text-align: justify" id="the-genesis-case">The Genesis Case</h2> 
Genesis had reported that it owed more than $3.5 billion to approximately 50 creditors. On January 31, 2024, Genesis and its affiliates settled with the SEC for a $21 million fine, escaping the penalty case against them. On the other hand, a new hearing will take place on February 14, and one of the main topics of discussion will likely be the excessive payments objected to by DCG. 
Gemini is planning to make principal payments to its Earn customers along with stake income. Amidst this turmoil, it remains unclear whether the Genesis issue will be resolved, and the next hearing could cause new FUD in the market. 
<h5>The post first appeared on COINTURK NEWS: <a href="https://en.coin-turk.com/genesis-bankruptcy-saga-payments-and-legal-challenges/" data-wpel-link="internal">Genesis Bankruptcy Saga: Payments and Legal Challenges</a></h5>

Genesis Bankruptcy Saga: Payments and Legal Challenges

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