DCG objects to extra payouts for special Genesis creditors
Barry Silbert’s Digital Currency Group (DCG) has object ed to the bankruptcy plan of its subsidiary Genesis Global Capital because it wants to pay back a group of controlling creditors more than required. In a motion filed on Monday, DCG has said Genesis’ bankruptcy plan is unlawful, inequitable, and violates its rights. Under bankruptcy law, payouts of digital assets are determined by price at the time the firm officially went under. Bitcoin , for example, was worth $21,000 when Genesis filed for bankruptcy on January 20, 2023. At press time, however, bitcoin has appreciated by a whopping 105%, to over $43,000. Genesis has proposed to give “hundreds of millions of dollars more” to its general unsecured creditors in order to reflect this price change. Bitcoin’s recent price gains have also caused FTX creditors to object to far lower payouts. Read more: Genesis eyeing tax benefits after blocking DCG sale According to DCG, paying extra to a small gro...