Monday’s hearing, sean o’neal, a lawyer representing the bankrupt crypto broker genesis, said there’s “some measure of confidence” the firm would resolve its disputes with creditors this week. the case is being closely watched by crypto exchange gemini, which last week threatened to sue dcg and its ceo over the $900 million allegedly owed by genesis trading, the crypto broker’s lending arm.
Filing for bankruptcy protection took place last week. judge sean lane granted several “first-day” motions filed by genesis, including requests that will enable the firm to pay its employees and critical vendors. genesis also revealed plans to auction off various assets held by the firm, and ultimately to exit bankruptcy by may 19.
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. there are, however, about $1.7 billion of claims against dcg, the firm’s parent company. interim ceo derar islim said that an in-court restructuring presents the most effective avenue through which to preserve assets and create the best possible outcome for all genesis stakeholders. gemini lawyer chris marcus said that there is some work to do before the two sides can come to terms, but he is “cautiously optimistic” the disputes could be resolved without a mediator.