DCG Says Genesis Creditors May Get Unfair Windfall Under Plan

Barry Silbert’s Digital Currency Group is alleging that customers of bankrupt subsidiary Genesis Global Holdco LLC are slated to get an impermissible windfall under the crypto lender’s proposed debt-repayment plan.

DCG said in a Monday court filing opposing the plan that although it supports Genesis creditors being fully repaid, the proposal favors “a small controlling group of creditors” over others and strips DCG of economic and governance rights.

The filing represents the latest development in a dispute between DCG, major creditors and Genesis, which is being run independently while in Chapter 11. DCG last year was unable to rally enough ...