Genesis gets a court order to stop selling shares until DCG goes bankrupt!

author: Mustafa Mullah

Mustafa has been writing about blockchain and cryptocurrencies for several years. He has previous trading experience and has been working in the fintech industry since 2017.

December 19, 2023 16:12

Genesis received a court order prohibiting its parent company, Digital Currency Group (DCG), from selling or reducing its stake in Genesis until bankruptcy proceedings are completed. This measure is aimed at securing tax benefits for Genesis if DCG’s stake falls below 80%. The benefits at issue amount to approximately $700 million in federal net operating loss carryforwards, which can be used to reduce Genesis’ federal income tax liability and contribute to a successful restructuring. The development comes as Genesis filed for Chapter 11 bankruptcy last November, citing the FTX collapse as a major factor in its financial problems.