Judge blocks DCG from changing Genesis ownership during bankruptcy

Digital Currency Group (DCG) can’t make any ownership changes with Genesis until the former exits bankruptcy, a judge ruled Monday.

The ruling leaves Genesis protected under DCG’s tax consolidated group, giving certain benefits to the bankrupt institutional-focused crypto lender.

Those benefits are in effect until the “occurrence of the effective date of a Chapter 11 plan” or the bankruptcy is converted to a Chapter 7 case, which would mean liquidating the business.

Genesis filed the motion back in late November, arguing that DCG’s stake in Genesis must stay above 80% to “to protect the potential value of [its holding company’s] interest in the federal net operating loss…

Read more on Blockworks

70.7K Reads