Genesis gets court order to stop DCG from selling stakes till bankruptcy!

Estimated read time 1 min read
Crypto Live News

Author: Mustafa Mulla

Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.

Genesis has obtained a court order preventing its parent company, Digital Currency Group (DCG), from selling or reducing its ownership in Genesis until the bankruptcy proceedings are completed. This move aims to secure tax benefits for Genesis, which could be lost if DCG’s ownership falls below 80%. The benefits in question are worth around $700 million in federal net operating loss carryforwards, which can be used to decrease Genesis’ federal income tax liability and contribute to a successful reorganization. This development comes as Genesis filed for Chapter 11 bankruptcy in November, citing the FTX collapse as a major factor in its financial woes.

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