01-24-2023 icon

Genesis Lawyer Confident of Creditor Resolution This Week

By Lucy Adegbe

A report by Reuters has said Sean O’Neal, a lawyer representing bankrupt lending protocol, Genesis has a measure of confidence that the platform will resolve its dispute with creditors this week.

“Sitting here right now, I don’t think we’re going to need a mediator,” O’Neal reportedly told the Manhattan court during a preliminary hearing Monday. “I’m very much an optimist.”

Genesis and the firm’s creditors according to O’Neal “are getting closer” to an agreement.

After the suspending withdrawals in November 2022 and weeks of rumours about the firm’s imminent bankruptcy, Genesis, a subsidiary of the Barry Silbert-owned Digital Currency Group (DCG), filed for bankruptcy protection last week.

“An in-court restructuring presents the most effective avenue through which to preserve assets and create the best possible outcome for all Genesis stakeholders,” interim CEO Derar Islim said at the time.

During Monday’s hearing, bankruptcy Judge Sean Lane also granted several “first-day” motions filed by Genesis, including requests that will enable the firm to pay its employees and critical vendors.

The firm also revealed plans to auction off various assets held by the firm, and ultimately to exit bankruptcy by May 19.

The crypto broker reported slightly over $5 billion of assets and liabilities and more than 100,000 creditors who it owns at least $3.4 billion. However, there are about $1.7 billion of claims against DCG, the firm’s parent company.