Court prevents DCG from altering Genesis ownership
In a recent legal development, a judge has ruled that Digital Currency Group is prohibited from making ownership changes within Genesis until DCG successfully exits bankruptcy. This decision safeguards Genesis under DCG’s tax consolidated group, granting specific benefits to the crypto lender amidst its bankruptcy status. The protective benefits will remain in force until the effective date of a Chapter 11 plan or if the bankruptcy transitions to a Chapter 7 case, resulting in business liquidation. Genesis, arguing its case since late November, emphasized the necessity of DCG maintaining a stake above 80% to preserve the potential value of its holding company’s interest in the federal net operating loss (NOL) carryforwards of the DCG Group. You might also like: DCG and Genesis reach landmark settlement over bankruptcy Net operating loss carryforwards serve as a tax advantage, enabling Genesis to deduct losses from future profits. Genesis, estimating over $700 ...