Genesis Advokat has “a measure of confidence” in the creditors’ decision this week

Sean O’Neill, the attorney representing bankrupt crypto broker Genesis, said there is “a measure of confidence” that the company will resolve its disputes with creditors this week, according to Reuters a report.

“While I sit here now, I don’t think we’re going to need a mediator,” O’Neill reportedly told the Manhattan court during a preliminary hearing on Monday. “I am very optimistic.”

According to O’Neill, Genesis and the company’s creditors are “coming closer” to an agreement.

After freezing withdrawals in November and weeks of speculation about the company’s imminent bankruptcy, Genesis, a subsidiary of Barry Silbert’s Digital Currency Group (DCG), filed for bankruptcy protection last week.

“A court-ordered restructuring is the most effective way in which assets can be preserved and the best possible outcome can be achieved for all stakeholders in Genesis,” Acting CEO Dirar Islam said at the time.

Decrypt I have not received a direct response from Genesis after reaching out for further feedback.

Genesis eyes may go out of action

In Monday’s hearing, Bankruptcy Judge Sean Lane granted several “day one” requests Genesis made, including ones that would allow the company to pay its employees and critical suppliers.

Genesis also revealed plans to auction off various assets held by the company, and eventually emerge from bankruptcy by May 19th.

The crypto broker reported assets and liabilities of just over $5 billion and more than 100,000 creditors holding at least $3.4 billion.

However, there are approximately $1.7 billion in claims against DCG, the company’s parent company.

The case is also being closely watched by cryptocurrency exchange Gemini, which last week threatened to sue DCG and its CEO for $900 million allegedly owed to Genesis Trading, the cryptobroker’s lending arm.

According to Gemini attorney Chris Marcus, “there is some work to be done” before the two parties reach an agreement. However, he told Judge Lane he was “cautiously optimistic” that the disputes could be resolved without mediation.

Stay up to date with cryptocurrency news, and get daily updates in your inbox.

Leave a Reply

Your email address will not be published. Required fields are marked *