DCG objects to subsidiary Genesis' proposed settlement with the New York Attorney General's Office

CoinDesk reported that Digital Money Group (DCG), a subsidiary of Genesis, opposes the settlement proposed by the New York Attorney General's Office.

Earlier this month, Genesis Global reached an agreement with the Attorney General's Office to settle charges of "fraudulent investment", but its parent company, DCG, stated that this is not an appropriate settlement. DCG stated in its opposition filed with the US Bankruptcy Court for the Southern District of New York that Genesis "cannot use settlement as an excuse to obtain value from the lower class and redistribute it to preferred creditors, thereby violating absolute priority."

Jason Brown, former Deputy Chief of the Attorney General's Office and former senior federal prosecutor in New York, supports DCG's opposition and claims in court documents that the details of the settlement may not have been properly finalized.