Genesis Creditors Launch 7-Man Committee for Bankruptcy Proceeding

The atmosphere is getting tense for Genesis Global as a seven-man committee has been set up to represent the affected creditors in the firm’s bankruptcy proceedings.

This committee will serve as the mouthpiece for the creditors in the United States Southern District of New York Bankruptcy Court. Genesis Global’s creditors include high-profile crypto firms while a larger percentage are individual investors.

William Harrington, a spokesperson from a subsidiary of the Department of Justice charged with representing the government in such bankruptcy cases as well as formalizing committees (U.S Trustee) appointed the unsecured creditor committee. Members of the committee include a few representatives selected from the creditors. Representatives from Mirana and Digital Finance Group are also members of the committee.

Mirana Asset Management which is the fifth largest creditor based on the top 50 creditors list has a $151 million claim.

“Mirana Ventures is not a creditor and has no exposure to this. I have no connection to Mirana AM and much of the info including the amount is incorrect,” Jonathan Allen, the creditor contact for Mirana said while attempting to explain that Mirana Asset Management and Mirana Ventures are separate entities.

On the other hand, Digital Finance Group has a claim of $37 million. European cryptocurrency exchange Bitvavo also has more than $300 million stuck in Genesis and its parent company Digital Currency Group (DCG).

On Genesis’ Bankruptcy Filing

When Genesis filed for Chapter 11 bankruptcy in January, the firm mentioned that it was the right course to preserve its assets and move its business forward and ultimately provide an optimal outcome for Genesis clients and Gemini Earn users. 

Ultimately, the firm believes that the restructuring process which covers Genesis Global Holdco, LLC (“GGH”) and two of its lending business subsidiaries, Genesis Global Capital, LLC (“GGC”) and Genesis Asia Pacific Pte. will be of the utmost value to all its users.

Amongst its unsecured creditors’ claims, the top 50 were worth about $3.6 billion; one of the claims is worth half a billion. Plutus Lending, a division of crypto trading platform Abra is owed $30 million while VanEck’s New Finance Income Fund is owed $53 million.