A group of creditors are unhappy with a $175 million settlement between the bankrupt crypto lender Genesis Global Capital (GGC) and the failed exchange FTX.
They claim that GGC is trying to “manipulate” the bankruptcy process by buying votes from other creditors. Genesis, which filed for bankruptcy in January, is facing more trouble as it tries to close its business and repay its customers.
It has been in a long dispute over how to deal with more than a billion dollars that its parent company Digital Currency Group (DCG) owes it.
The proposed settlement with FTX, which would reduce its claim on the Genesis estate from $4 billion to $175 million, has also met with resistance from other creditors who are not satisfied with the terms.
