Genesis creditors launch class action lawsuit against DCG, Barry Silbert
The lawsuit alleges that Genesis violated the Securities Act and seeks to hold DCG and Silbert liable as "control persons."
Track crypto bankruptcies, restructurings, creditor updates, and court filings tied to failed exchanges, lenders, and digital asset firms.
The company's plans must still be approved by courts and creditors.
Genesis claim a "behind-the-scenes" collateral agreement discharged the $769 million debt owed to Gemini Earn.
The price of BTC mining rigs fell nearly 85% over the past year, causing some loans to become under-collateralized.
Genesis has "confidence" it can resolve disputes with creditors this week. The lender is looking to exit bankruptcy by May 19.
With earnings going from high to low in 2022, some miners struggled to pay the dues, resulting in more defaults, distressed asset sales, and acquisitions than ever before.
The company called its exposure "minimal" and said it has no outstanding loans.