Parties optimistic about debt solution of Genesis

Several US states are opening investigations into crypto lending platform Genesis

Sean O’Neal, an attorney representing bankrupt crypto brokerage Genesis, said Monday at a preliminary hearing in The Manhattan Court that there is some degree of confidence that the company would resolve its disputes with creditors this week.

“I don’t think we need a mediator,” O’Neal said. “I am very much an optimist.” According to O’Neal, Genesis and the company’s creditors are moving closer to an agreement.

Will the uncertainty end?

Following the November withdrawal freeze and weeks of speculation about the company’s imminent bankruptcy, Genesis, a subsidiary of the Barry Silbert-owned Digital Currency Group (DCG), filed Chapter 11 bankruptcy protection last week.

At Monday’s hearing, Judge Sean Lane gave the go-ahead to several Genesis motions allowing them to pay their staff and critical suppliers. The company also announced its intention to sell multiple assets and to be out of the bankruptcy process by May 19. It was reported that Genesis has $5 billion in assets and liabilities, and has some 100,000 creditors who owe them at least $3.4 billion. There are reportedly $1.7 billion in claims against DCG, the parent company of Genesis.

Gemini Advocate is cautiously optimistic

The case is also being closely watched by crypto exchange Bitvavo and Gemini. The latter threatened to sue last week.

Yet Gimini also seems to be slowly taking a more positive view of the matter. Lawyer Chris Marcus said there is work to be done before the two sides could reach a deal, but he also said he was cautiously optimistic that the disputes could be resolved without a mediator.


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