Digital Currency Group (DCG) opposes a proposed settlement between subsidiary Genesis and the New York Attorney General’s Office. Genesis Global reached an agreement with the attorney general's office earlier this month to resolve allegations that it defrauded investors, but parent company DCG claimed it was not an appropriate settlement.
DCG argued in objections filed in the U.S. Bankruptcy Court for the Southern District of New York that Genesis "cannot violate absolute priority by taking value from junior creditors and reallocating it to senior creditors under the guise of a 'settlement'" ." Jason Brown, a former co-chief deputy in the Attorney General's Office and a former senior federal prosecutor in New York, supported DCG's opposition, claiming in court filings that details of the settlement may not have been properly handled. (CoinDesk)