Genesis aims to settle creditor disputes

On the first day of bankruptcy hearings, Genesis attorney Sean O'Neal was confident: the crypto lender wants to end the disputes with its creditors this week.

On the first day of bankruptcy hearings, Genesis attorney Sean O'Neal was confident: the crypto lender wants to end the disputes with its creditors this week.

Sean O'Neal, Genesis's lawyer, said that the crypto lender was confident it could settle its disputes with creditors this week. Reuters reports. Specifically, he said: "Now that I’m sitting here, I don’t think we need a mediator. I’m very optimistic." Brian Rosen, an attorney for the creditors who are seeking to recover $1.5 billion in claims, confirmed: "We’re moving closer to a settlement." The U.S. bankruptcy judge has granted several Genesis "first day" motions. These include continuing payments to employees and suppliers. One of the statements at the first hearing also dealt with clients' privacy interest: Genesis would not have to disclose customers' names on its debts list.

Uncertainty over compensation

Genesis, the subsidiary of Digital Currency Group (DCG), filed for bankruptcy protection from creditors on January 19. Whether Gemini Earn customers can expect compensation soon remains to be seen. The founder of the crypto exchange, Cameron Winklevoss, welcomed the developments. He said it was the first step toward being able to repay customers.

In the dispute over about $900 million, he had called for the ouster of DCG head Barry Silbert.