The financial markets have started to show tell-tale signs of bearishness, which is never good news for the economy and your wallet. But perhaps it’s no surprise that the industry that appears to have taken more than glancing blows is the always-volatile crypto world.
There are presently more than 100K creditors who might want to sue Genesis and some of its subsidiary companies after several of its companies filed for Chapter 11 bankruptcy protection on Jan. 19.
Based on the filings in the state of New York, Genesis has already begun the corporate restructuring that will hopefully address the losses suffered by those individuals who loaned crypto assets for profit through Gemini Earn. Genesis can seek white knight funding, and they still own monetizable assets.
Which Companies Are Affected?
Parent company Genesis Global Holdco, LLC (“GGH”) and its subsidiaries that were involved in lending the cryptocurrency assets, Genesis Asia Pacific Pte. Ltd. (“GAP”) and Genesis Global Capital, LLC (“GGC”) are all covered in the bankruptcy petition filed in the United States Bankruptcy Court for the Southern District of New York.
Is It Wise to Sue a Bankrupt Company?
It’s fair to debate the strategy of suing a company that filed for bankruptcy. But as this wasn’t a corporate liquidation bankruptcy but a corporate restructuring, the situation is still potentially salvageable.
The creditors need to receive compensation, as they now, too, have claims generated against them by clients whose crypto assets were never registered with the Securities and Exchange Commission (SEC) but were subsequently lost in Gemini Earn loans.
There are certainly many who may ultimately have a Genesis claim to file. If the court chooses to certify a Genesis class lawsuit, there will be a window of opportunity to submit claims.
Which Companies Got Hit the Hardest?
The bankruptcy petition states that Mirana, VanEck’s New Finance Income Fund, Cumberland, MoonAlpha Finance, and Gemini are some of the creditors that are owed the most by Genesis. You can be sure that they will take every action to assure their losses get compensated.
If you also feel that you are owed money by Genesis submit a claim.
Chart Your Own Legal Course to Victory Without a Lawyer
The top reason many consumers fail to go after the companies that owe them money due to breached contracts, personal injury, and even unreturned deposits for rentals is the cost of hiring an attorney far exceeds the amount they can recover.
In other words, they don't intend to throw good money after bad. Even if they prevail and get the court to award them attorneys' fees and court costs -- something that is never a given -- they might have to wait a long time to get those funds back in their bank accounts.
Use Dispute to Initiate Your Legal Claims
Sometimes, you really need an attorney on your side. For instance, those facing charges need the advice and counsel of a criminal defense attorney to help them build the best defense possible.
But with many civil matters, do you really need to retain an attorney to handle your business conflict with another person or company?
The short answer is that you might not. At least initially, you can save a great deal of money by using Dispute e-scrivener services without ever having to leave your own home.
How Does Dispute Work?
Dispute is not a law firm, so we can help clients do their own legal work by plugging their information into handy demand letter templates. A demand letter is the cornerstone of every successful petition for damages.
Most cases settle before the litigants ever step foot inside of a courtroom. But there is a process that must be followed, including choosing the right venue to seek civil justice.
Dispute can directly mail your demand letter and help generate small claims paperwork, putting you on the road to recovering compensation for injuries, damages, losses, and costs that you expended.