Genesis’s first bankruptcy hearing has been scheduled

'Bitcoin Jesus' refuses to pay the $12m he owes Genesis

TL;DR Breakdown

  • According to court documents, Genesis Capital’s bankruptcy case will have its first hearing on January 23.
  • Genesis is the largest unsecured creditor for FTX, with claims totaling $226 million.
  • Meanwhile, DCG has subsequently denied having any influence on Genesis’s bankruptcy filing.

According to documents filed with the court, the first hearing in the bankruptcy case brought by Genesis will take place on Monday, January 23 at 7:00 pm GMT.

The hearing for this matter will take place in the United States Bankruptcy Court for the Southern District of New York before Judge Sean H. Lane.

On January 19, the company and two of its other subsidiaries that are involved in the lending sector, Genesis Global Capital and Genesis Asia Pacific, filed for bankruptcy under Chapter 11 of the United States Code.

These three organizations have a combined total of 100,000 people who owe them money. It is important to note that the combined liabilities of the companies vary anywhere from $1.2 billion to $11 billion dollars.

Genesis revealed to be FTX’s largest unsecured creditor

Additionally, the crypto lender has established itself as the biggest unsecured creditor of FTX.com and the organizations that are linked to the failed exchange.

Genesis is at the top of the new Top 50 List, which represents the biggest creditors of FTX and its connected firms. Based on a court file that was submitted on Thursday, the crypto lender owes $226.3 million.

According to the filing, the amended list now includes the names of any creditors who were appointed to serve on the Official Committee of Unsecured Creditors by the United States trustee who is overseeing the case.

While we have made significant progress refining our business plans to remedy liquidity issues caused by the recent extraordinary challenges in our industry, including the default of Three Arrows Capital and the bankruptcy of FTX, an in-court restructuring presents the most effective avenue through which to preserve assets and create the best possible outcome for all Genesis stakeholders

Derar Islim, Genesis Interim CEO

According to a statement released by the company, Genesis and its advisors have been holding ongoing and fruitful discussions with the advisors of the company’s creditors and the corporate parent Digital Currency Group (DCG) to determine the most efficient way to protect the assets of the company while also advancing the business.

DCG has since denied any role in the lender’s decision to file for bankruptcy, stating instead that a special committee comprised of independent directors made the recommendation and decision to seek protection under Chapter 11 of the Bankruptcy Code, as was reported by Cryptopolitan.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

Jai Hamid

Jai Hamid

Jai Hamid is an enthusiastic writer whose current area of interest is the blockchain sector. Whenever she is not reading or writing, you can find her tending to her plants in the garden. She strongly believes that crypto is going to transform the world for the better.

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