U.S. government trustee files objection to revision of Genesis bankruptcy case

The U.S. government's trustee has challenged revised disclosure documents in Genesis' bankruptcy case. Trustee William Harrington said the new disclosure "substantially changes the terms of the plan previously filed by the debtors." The disclosure was filed on October 24 as part of a joint initiative. The biggest change was in the sale plan, where the debtor announced it would no longer seek to sell its assets, a change that required a longer notice period of 28 days. Harrington argued that the debtor did not ask the court to shorten the notice period and that creditors needed more time to evaluate and vote. He noted that the revised disclosure document did not provide the most critical information for creditors: what distributions they can expect under the plan and when they can receive it. Genesis filed for bankruptcy in January this year, and FTX collapsed a few months later. In August this year, Genesis and Gemini reached a preliminary agreement, claiming that approximately 70-90% of the money could be returned to unsecured creditors. Additionally, Gemini recently filed a lawsuit against Genesis, claiming that Genesis is owed $160 million for Grayscale Bitcoin Trust (GBTC) shares that were used as collateral for the Gemini Earn program. The case is part of multiple legal disputes between Gemini, Genesis and Genesis parent company Digital Currency Group. (BlockWorks)