Unsecured Creditors Object to Genesis’ Request for Intercompany Transactions

02/21/2023 13:12 • Tech Trends • 83 views

It is reported that according to a court document released on February 20, the unsecured creditor of Genesis raised an objection to the company’s request to continue the intercompany transaction. They believe that the request of Genesis has caused the concern of the creditor committee, because the intercompany transaction of Genesis has been investigated before, and no relevant information such as the address of the encrypted wallet has been provided so far, so they hope that the court will prohibit the company from conducting all intercompany transactions and require it to “provide necessary reports and information to track the cash outflow and the flow of the debtor’s digital assets, including the address of the encrypted wallet”. （cryptoslate）

Creditors apply to the court to restrict Genesis from conducting intercompany transactions

Analysis based on this information:

The news report reveals that Genesis, a digital asset trading platform, has encountered opposition from its unsecured creditor, who has raised an objection to the company’s request to continue conducting intercompany transactions. The creditor committee has expressed concern over the lack of transparency and information regarding the intercompany transactions of Genesis. The company’s previous lack of disclosure regarding the address of the encrypted wallet has raised suspicions among the creditor committee. As a result, the committee has requested the court to prohibit the company from conducting intercompany transactions and provide necessary reports and information to track the cash outflow and the flow of the debtor’s digital assets.

The objection raised by the unsecured creditor indicates the emergence of mistrust among the financial community regarding the practices of digital asset trading platforms. The lack of transparency and accountability in conducting business transactions using digital assets can create complications for creditors, and often leads to legal disputes. With the rise of cryptocurrencies and blockchain technology in recent years, the need for enhanced security measures and transparency in digital asset transactions has become a matter of concern for regulators and market participants alike.

The objection of the creditor committee is also an indication of the need for digital asset trading platforms to establish higher levels of trust with their stakeholders by adopting transparency and accountability measures in their operations. Genesis should take proactive measures to address the concerns of the creditor committee and provide the necessary information and reports to establish trust and credibility with its creditors.

In conclusion, the objection raised by unsecured creditors of Genesis regarding the company’s request to continue conducting intercompany transactions highlights the need for increased transparency and accountability in digital asset transactions. Genesis needs to address the concerns of its stakeholders by adopting best practices in digital asset trading, establishing greater transparency and accountability measures, and providing timely reports and information regarding cash outflow and the flow of digital assets.

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Unsecured Creditors Object to Genesis’ Request for Intercompany Transactions

Creditors apply to the court to restrict Genesis from conducting intercompany transactions

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