- Crypto Lender Genesis Seeks Creditor Deal in Days or Mediator.
- Sean O’Neal addressed this at the first bankruptcy court hearing in Manhattan.
- Genesis said it owes more than 100,000 debtors at least $3.4 billion.
According to a lawyer for the insolvent Genesis Global Capital, the cryptocurrency lender was somewhat optimistic that it may settle its disagreements with creditors this week and emerge from Chapter 11 by the end of May. The insolvent company is now looking for a mediator or other kind of creditor arrangement.
The lawyer representing Genesis Global Capital, a cryptocurrency lending company controlled by Barry Silbert’s venture capital firm Digital Currency Group, Sean O’Neal, addressed at the first bankruptcy court hearing in Manhattan.
Two months after it stopped allowing client withdrawals in the aftermath of Sam Bankman-Fried’s FTX exchange collapsing, Genesis and two lending divisions filed for bankruptcy protection from creditors on January 19.
The case came after cryptocurrency lenders Celsius Network, Voyager Digital, and BlockFi declared bankruptcy last July.
Following about two months of discussions, O’Neal said Genesis had “some degree of confidence” it would settle its disagreements with creditors this week and would turn to mediation if required.
A number of “first-day” motions by Genesis, including those to pay workers and essential suppliers, were approved by U.S. Bankruptcy Judge Sean Lane.
Lane also claimed that Genesis did not have to divulge the identities of its clients in its lists of debtors due to their privacy rights, and advised that if their names were subsequently made public, Genesis consider warning about potential phishing schemes. Genesis has said that it intends to liquidate its assets via an auction by May 19.
The business said it owes more than 100,000 debtors at least $3.4 billion and declared assets and liabilities totalling just over $5 billion. It estimates that it had claims against its parent worth roughly $1.7 billion.
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