These allegations were made in recent filings on Thursday and have added complexity and uncertainty to the ongoing Genesis bankruptcy case, delaying efforts to wind down operations and restore funds to former customers.

Genesis Global’s Complex Relationship with DCG

The treatment of over a billion dollars owed by Digital Currency Group (DCG), the parent company of Genesis Global, has been a central issue in the bankruptcy case. The resolution of this matter has been a significant point of contention among creditors.

In mid-August, Genesis and FTX filed a legal agreement that allows FTX’s Alameda Research to claim $175 million from the GGC estate. This proposal has not been met with approval from all creditors, with Gemini, one of Genesis’s prominent creditors, expressing dissatisfaction and accusing Genesis of manipulating the voting process.

Gemini argues that Genesis’ proposal may not be fair, raising concerns about the fairness of the deal. Discontented creditors, including Gemini and a group called the “Fair Deal Group,” have accused Genesis of attempting to manipulate the bankruptcy process through vote-buying.

Impact on the Bankruptcy Process

These allegations of manipulation and vote-buying have complicated the Genesis bankruptcy case and may significantly delay the resolution of the bankruptcy. If proven true, legal actions may be taken against those involved. Genesis maintains that the FTX deal will help facilitate the company’s reorganization without the need for prolonged litigation.

The Genesis bankruptcy case highlights the challenges and complexities in the crypto industry, particularly when large sums of money are involved. The outcome of this legal battle will have implications for Genesis and the broader crypto sector.