Summary
Digital Currency Group (DCG) has objected to the bankruptcy plan of defunct lender Genesis because it believes the plan overpays creditors. DCG stated that it would support a plan that pays creditors in full, as the estate has sufficient assets to do so. The objection is based on the belief that the plan favors a small group of creditors over others and violates the Bankruptcy Code. The amended plan allows creditors to recover the cash value of their digital assets as of the petition date and then receive additional payouts based on the current value of those assets. Genesis filed for bankruptcy in January 2023 after the FTX crash, and the court ruling in the ongoing FTX bankruptcy case only accounted for the value of crypto as of the petition date and not the price rebound.
Key Points
1. Digital Currency Group opposes the bankruptcy plan of Genesis due to overpayment of creditors.
2. The plan is criticized for favoring a small group of creditors and violating the Bankruptcy Code.
3. The amended plan allows creditors to recover the cash value of their digital assets and receive additional payouts based on the current value of those assets.