DCG opposes the settlement proposal reached by its subsidiary Genesis with the New York Attorney General's Office

ChainCatcher news, according to CoinDesk, Digital Money Group (DCG) opposes the settlement proposal made by its subsidiary Genesis with the New York Attorney General's office. Genesis Global reached an agreement with the Attorney General's office earlier this month to resolve allegations of defrauding investors, but its parent company believes this is not an appropriate settlement. In a filing opposing the proposal submitted to the U.S. Bankruptcy Court for the Southern District of New York, DCG stated: "Genesis cannot use the guise of 'settlement' to violate absolute priority, take value from lower-tier creditors, and redistribute it to senior creditors."

In another statement issued by DCG on Wednesday, the company described the deal as a "backdoor attempt to evade U.S. bankruptcy law," and as a "last-minute secretly arranged disruptive deal." Jason Brown, former co-chief deputy of the Attorney General's office and former senior federal prosecutor in New York, supports DCG's opposition, claiming in court documents that the details of the settlement agreement may not have been properly handled.