bankrupt cryptocurrency Digital Currency Group, the parent company of Genesis, has published a letter aimed at answering questions from investors about the bankruptcy process.
Digital Currency Group used the following statements in the official letter it published on Twitter:
“Yesterday, Genesis lender filed for Chapter 11 bankruptcy protection in the Southern District of New York.
Genesis has its own independent management team, legal and financial advisors, and has appointed a special committee of independent directors responsible for the restructuring of Genesis Capital, which recommended and decided that Genesis Capital should apply to Chapter 11.
Neither DCG nor any of its employees, including those on the Genesis board, were involved in the decision to file for bankruptcy.
DCG, Grayscale Investments LLC, Foundry Digital LLC, Luno Group Holdings Ltd, CoinDesk Inc. and its other subsidiaries, including TradeBlock Corporation, will continue to operate as usual. Specifically, Genesis Global Trading, Inc., Genesis’s spot and derivatives trading business. will continue to operate as usual.
As previously disclosed in shareholder letters, DCG owes Genesis Capital approximately $526 million due in May 2023 and $1.1 billion under a promissory note payable in June 2032. DCG intends to address its obligations to Genesis Capital in its restructuring process.
DCG continues to engage with Genesis Capital and its creditors to reach an amicable settlement for all parties.”
*Not investment advice.