Bloomberg: Genesis sues DCG to recover over $1 billion in pre-bankruptcy transfers

2025-05-20 08:03:56

Collection

ChainCatcher news, according to Bloomberg, the crypto lending institution Genesis Global Capital has sued its parent company Digital Currency Group (DCG) to recover over $1 billion in fund transfers made within a year prior to filing for bankruptcy.

Genesis filed the lawsuit on Monday in the U.S. Bankruptcy Court for the Southern District of New York, claiming that insiders, including DCG, DCG founder Barry Silbert, and their affiliates, transferred funds among themselves while the company was insolvent.

The company seeks to have these transfers classified as "preferential payments" under bankruptcy law, allowing them to reverse and recover the related amounts. These cryptocurrency payments are valued at over $582 million, while the total amount of preferential transfers exceeds $1.2 billion.

(Source Link)

ChainCatcher reminds readers to view blockchain rationally, enhance risk awareness, and be cautious of various virtual token issuances and speculations. All content on this site is solely market information or related party opinions, and does not constitute any form of investment advice. If you find sensitive information in the content, please click "Report", and we will handle it promptly.