Digital Currency Group (DCG) has filed an objection to a recent settlement agreement between its bankrupt subsidiary, Genesis, and the New York Attorney General’s Office (NYAG).
The objection, submitted on Feb. 21, raises concerns about the settlement’s adherence to the Bankruptcy Code and its implications for the rights of DCG as a creditor and equity holder.
DCG’s objections
Genesis recently reached a settlement with the NYAG that includes a payment plan for unsecured creditors based on asset valuation at the time of distribution.
However, DCG’s objection highlights a departure from standard bankruptcy procedures, which typically base such payments on the valuation at the petition date. The Supreme Court has previously ruled that settlements cannot contravene the Bankruptcy Code, a stance DCG emphasizes in its filing.
The company argues that the settlement unfairly prioritizes unsecured creditors at the expense of secured creditors and equity holders like DCG, potentially dep
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