Judge bars DCG from selling or reducing Genesis stake until Genesis bankruptcy proceedings are over

Crypto lending company Genesis recently successfully applied to prohibit its parent company Digital Currency Group (DCG) from selling or reducing its holdings in Genesis before the conclusion of Chapter 11 bankruptcy proceedings. Genesis' move is intended to ensure certain tax benefits that only apply when Genesis is part of a tax-consolidated group that is part of DCG's common parent, according to a court order issued on Monday. According to a November motion, if DCG's ownership of Genesis fell below 80%, Genesis would lose approximately $700 million in "federal net operating loss carryforward" benefits. These carryforwards can be used to reduce Genesis's federal income tax liability in current and future years. This will "translate into future tax savings, thereby strengthening the debtor's cash position, benefiting all stakeholders and contributing to a successful restructuring," the motion states. (CoinDesk)