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A seven-member panel was appointed to represent the interests of unsecured creditors in the Genesis Global Bankruptcy case, as per documents filed by the courts on February. 4.
The committee will represent the creditors in court, having the right to be consulted before major decisions and to participate in the reorganization plan. Members are usually chosen from a list of 20 of the most significant unsecured creditors.
Of the members selected are mirana asset management - a crypto trading arm per bit, sof international, digital finance department, and bitcoin crypto-interchange, with three separate creditors amelia alvarez, richard weston, This is Teddy Andre Amadeo Goriss.
The group was appointed by william harrington, a representative of the U.S. trustee - an executive body in the Department of Justice charged with overseeing bankruptcy cases. The establishment of a creditor committee constitutes an important step in bankruptcy proceedings.
Related: Genesis Capital’s fall might transform crypto lending — not bury it
With over $290 million exposure, Bitvavo sits among the biggest creditors, alongside claims of Mirana with $150 million and $37 million from Digital Finance Group.
Genesis Global Holdco and its lending business subsidiaries, Genesis Global Capital and Genesis Asia Pacific — collectively known as Genesis Capital, filed for bankruptcy on Jan. 19, citing liabilities up to $10 billion.
The companies requested a chapter 11 relief two months after disclosing liquidity issues as a result of the collapse of the ftx cryptocurrency exchange. Withdrawals have been suspended from Genesis Global Capital’s platform since Nov. 16.
On Jan. 24, a group of creditors filed a securities class action (SCA) lawsuit against Genesis parent-company Digital Currency Group (DCG), and its founder and CEO Barry Silbert, alleging violations of the federal securities laws.
The prosecution alleges that Genesis engaged in securities fraud through a scheme to defraud lenders of current and potential digital assets by making false and misleading representations. In the applicant's opinion, Genesis made an intentional misrepresentation of its financial position, contrary to paragraph 10(b) of the U.S. Securities Exchange Act.
