Crypto
Genesis Creditors Charge It with Alleged Ballot-Stuffing over the FTX Deal
Genesis Global Capital creditors target $175M deal with FTX in bankruptcy saga. Allegations of vote-buying cast shadows on GGC’s troubles.
The bankrupt crypto lending firm Genesis Global Capital’s creditors have targeted a proposed deal of up to $175M. FTX (the now-defunct crypto exchange) was the other party engaged in the deal. The creditors say GGC bought votes to influence the bankruptcy procedure. The filings of Thursday point toward another difficulty for Genesis.
Genesis Creditors Accuse the Company of Ballot-Stuffing Concerning the FTX Deal of $175M
The platform hopes to shut down its matters and begin to return funds to former clients. The platform submitted the bankruptcy filing back in January this year. It has argued over the treatment of more than a billion dollars that its parent firm Digital Currency Group owes. Certain among the other creditors remained unpleased with the tentative contract.
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A couple of bankrupt firms submitted another legal contract in August’s mid. The respective contract permits Alameda Research of FTX to claim $175M on the estate of Genesis. Nonetheless, the rest of the creditors expressed resentment in the case of this development. Gemini (a prominent crypto exchange that is also a creditor of Genesis) commented on this in its recent filing.
The platform said that the proposed settlement of Genesis with FTX focused on influencing the plan voting procedure. The company labeled the development as a pre-planned contract. Genesis has to pay nearly $766M to Gemini. The crypto exchange asserted that the proposal was not worthy of being accepted at its face value.
DCG Labels Gemini’s Fraud-Related Allegations as a “Public Stunt”
As the creditors must vote on the bankruptcy plans, they are placing ballot-stuffing charges on Genesis. Gemini as well as the rest of the creditors have formerly stood against the DCG contract. Moreover, Gemini filed a lawsuit against DCG for the alleged fraud that Genesis conducted. Nevertheless, DCG responded to this saying that the allegations were “defamatory” to attract the public.
