The Digital Currency Group (DCG) holding filed a protest against the bankruptcy plan of its subsidiary Genesis.
The statement said that the cryptocurrency lender is offering to reimburse its customers more than they are legally entitled to. However, DCG believes that its subsidiary must pay back the amount of crypto assets it had at the time Genesis filed for bankruptcy.
“Genesis offered to make additional payments to its customers due to rising prices for assets such as Bitcoin and Ethereum, which violates US bankruptcy laws. DCG cannot support a plan that is illegal and deprives us of our corporate governance rights,” Digital Currency Group said in a statement.
Let us remind you that Genesis previously entered into an agreement with the US Securities and Exchange Commission and agreed to pay a $21 million fine. Genesis later asked to be allowed to sell $1.6 billion in trust assets.
