Following the news that broke just a few minutes ago, the Bitcoin price quickly rose from $51,000 to $51,700. The development was related to an objection made by DCG. The news of Bitcoin‘s price increase coincided with the parent company opposing the settlement agreement Genesis made with the New York Attorney General. Here are the details.
Genesis and DCG
Digital Currency Group, the parent company of Genesis which is currently undergoing bankruptcy proceedings, objected to the proposed settlement with the New York Attorney General. Genesis Global, which is facing bankruptcy, had made an agreement with the Attorney General to dismiss allegations of defrauding investors. However, DCG, one of the largest groups in the crypto industry, does not accept this.
The objection filed in court mentions that those with large claims are being favored over other victims with smaller portfolios. According to DCG, this goes against bankruptcy law and is being used like a “backdoor.” Jason Brown, a former co-chair assistant of the Attorney General and a former senior federal attorney in New York, supported DCG’s objection to the state’s settlement with Genesis.
“In a case of this magnitude, I would expect the parties to conduct thorough evaluations based on the merits of the claims before reaching any settlement. In my view, it is not ordinary to relinquish such disputes so easily.”
The Bitcoin price surged to $51,700 as the news of the objection began to circulate.
