Genesis Faces Unlikely Bankruptcy Foe: Its Own Parent Company

Bankrupt crypto lender Genesis Global Capital is facing an unexpected opponent as it seeks court approval on its proposal for distributing billions of dollars in assets to creditors: its own corporate parent, Barry Silbert’s Digital Currency Group.

Genesis and DCG are set to duel Monday in a White Plains, NY, courtroom over the bankrupt subsidiary’s plan for repaying creditors whose digital assets and cash have been frozen on the platform since November 2022 following the collapse of several large crypto firms.

At stake is the amount Genesis creditors will be repaid. Genesis, which is being run by independent ...