Some Genesis Creditors File for Mediator Assistance Over Amount of DCG Contribution to Reorganization

Creditors of bankrupt crypto lender Genesis Küresel have asked a court to appoint a mediator for the bankruptcy proceeding, according to court documents. Genesis’ owner said the move reflects the decision of a group of the creditors to walk away from a preliminary agreement.

After reaching a pact earlier this year with Genesis owner Digital Currency Group (DCG), the creditors said in a filing at the bankruptcy court for the Southern District of New York on Monday that they’re seeking a mediator over “the amount, form, timing and other terms and conditions of DCG’s contribution to the debtors’ reorganization plan.” DCG is also the parent company of CoinDesk.

The lending arm of Genesis halted withdrawals in November last year, in the wake of FTX’s collapse, with Genesis filling for bankruptcy at the start of this year. In February, a lawyer for Genesis said that DCG intends to sell Genesis’ crypto lending and trading platform as part of the bankruptcy proceedings.

In a tweet on Tuesday, DCG responded to the creditors’ filing, saying the request reflects the decision of some of the creditors to walk away from the prior agreement. These creditors have raised all new demands, DCG said.

DCG further said that the latest move will prolong the court process.

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Edited by Kevin Reynolds and Sheldon Reback.

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