Crypto Lender Genesis Overreaches in Repayment Plan, DOJ Says

Bankrupt cryptocurrency lender Genesis Global Holdco LLC shouldn’t be allowed to release third parties from liability or pay legal fees outside the court’s purview, the Justice Department argues.

The Office of the US Trustee on Monday objected to Genesis’ amended joint Chapter 11 plan in a filing in the US Bankruptcy Court for the Southern District of New York. The federal watchdog, which monitors corporate bankruptcies, argued the crypto lender’s plan from November also imposes additional burdens and requirements on certain creditors.

The US Trustee’s objections will be considered by the judge in the case, who could decide to reject ...