Genesis creditors file to restrict bankrupt’s firm intercompany transactions News ▸ US ▸ Bankruptcy
Genesis creditors file to restrict bankrupt’s firm intercompany transactions
Genesis creditors said the request raises various concerns for the committee as previous intercompany transactions are being investigated.
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Updated: Feb. 21, 2023 at 10:26 am UTC
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Genesis’ committee of unsecured creditors filed an objection to the bankrupt’s lender request to continue intercompany transactions, according to a Feb. 20 court filing.
The creditors argued that Genesis’ request raises various concerns for the committee because previous intercompany transactions are being investigated.
Genesis creditors said the bankrupt firm has yet to provide relevant information like its crypto wallet addresses that would aid its investigations into the previous transactions — and as such, it cannot ascertain the basis for its recent request.
“The Committee acknowledges that intercompany funding might be more cost-efficient and value-maximizing for unsecured creditors. But the Committee has concerns regarding the requested relief and has not been provided with information necessary to evaluate the requested relief.”
Genesis creditors want the court to prohibit the firm from all intercompany transactions and mandate it to “provide reporting and information necessary to track cash outflows and the movement of the Debtors’ digital assets, including cryptocurrency wallet addresses.”
Gemini co-founder Cameron Winklevoss highlighted intercompany transactions between Genesis and its parent company — Digital Currency Group (DCG)— as one of the reasons the company is in a deep financial hole.
However, DCG countered that there was a clear separation between it and its subsidiaries.
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Gemini
Gemini is a regulated digital asset exchange and custodian that allows customers to buy, sell, store, and stake digital assets in a regulated, secure, and compliant manner.
Genesis
Genesis is an institutional digital asset markets and a full-service digital currency prime brokerage providing a single point of access for select qualified individuals and global institutional investors.
Digital Currency Group
Digital Currency Group’s mission is to accelerate the development of a better financial system.
Cameron Winklevoss, a renowned figure in the cryptocurrency sector, is a Harvard University graduate with a degree in Economics and holds an MBA from Oxford University.