Genesis Global’s plan draws objection from crypto creditor group

By Sarah Lizee

Olympia, Wash., Feb. 22 – Genesis Global Holdco, LLC’s Chapter 11 plan of reorganization drew an objection from an informal group of crypto creditors, according to documents filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The group asserts the debtors are attempting to stunt the recoveries of investors by valuing their claims as of the petition date.

“Bitcoin, Ethereum, and other crypto assets have doubled in value since the petition date,” the group said in the objection.

“The value of the debtors’ estates has massively increased because the debtors are in possession of crypto that creditors deposited.”

The debtors are also seeking to protect their insiders by granting a still unknown number of broad releases, the group said.

The plan hearing is set for Feb. 26.

Genesis Global is a New York-based cryptocurrency lender that filed bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York on Jan. 19, 2023 under Chapter 11 case number 23-10063.

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