Frequently Asked Questions
GENERAL
What is the Genesis Litigation Oversight Committee?
As part of Genesis’s court-approved bankruptcy plan, the Genesis Litigation Oversight Committee (the “LOC”) was formed to represent the interests of all creditors—with a commitment to reclaiming value through in-kind asset recovery. In addition to creditors who sit on the LOC as unpaid volunteers, the LOC is comprised of experienced fiduciaries and legal professionals selected by creditors.
What is the purpose of the LOC?
As an independent body, the LOC is committed to driving accountability and bringing long overdue transparency to one of the most significant frauds in digital asset history. The LOC operates independently of Genesis’s former parent company, Digital Currency Group (“DCG”), and DCG’s affiliates.
Where did the LOC get its authority?
The LOC was created and authorized under the Chapter 11 Plan approved by the U.S. Bankruptcy Court for the Southern District of New York. It has the exclusive authority to oversee and direct the prosecution, resolution, or settlement of certain claims (“Retained Causes of Action”) on behalf of all unsecured creditors.
Who appointed the LOC?
Members of the LOC were elected by Genesis creditors through a court-approved process during the Chapter 11 cases. The creditors who sit on the LOC are unpaid volunteers.
Is the LOC affiliated with Digital Currency Group (“DCG”)?
No. The LOC operates independently from DCG and all affiliated entities. It was formed concurrent with the effective date of Genesis’s Chapter 11 Plan and is solely responsible for acting in the best interests of creditors.
How is the LOC funded?
The LOC is funded through a litigation reserve created as part of the Chapter 11 Plan. These funds are used to strategically pursue legal claims with the goal of preserving and returning value to the estate.
Who are the LOC’s advisors?
Selendy Gay PLLC is serving as legal advisor, BRG is serving as financial advisor, and C Street Advisory Group is serving as strategic communications advisor to the LOC.
LITIGATION OVERVIEW
Who did the LOC file against?
Following the bankruptcy proceedings of Genesis Capital, the LOC filed two landmark complaints:
A complaint filed on May 13, 2025, in the Delaware Court of Chancery against DCG, its CEO Barry Silbert, DCG advisor Ducera Partners LLC (“Ducera”), its CEO Michael Kramer, and a network of insiders (the “Delaware Complaint”).
A complaint filed on [May 19, 2025] in the Southern District of New York Bankruptcy Court against DCG, Barry Silbert, Grayscale Operating LLC (f/k/a Grayscale Investments LLC), Ducera, Michael Kramer, and Alan Silbert, among others (the “Bankruptcy Complaint”).
What is included in the complaints?
The Delaware Complaint asserts claims of breach of fiduciary duty, fraud, and unjust enrichment against Barry Silbert and other DCG and Genesis executives, for abuse of Genesis at the expense of its creditors.
The Bankruptcy Complaint seeks to recover more than $1.2 billion in cryptocurrency and U.S. dollars for transfers made to DCG, Barry Silbert, and affiliated insiders in the year leading up to Genesis’s bankruptcy. It alleges that these transfers—often timed around market flashpoints including the collapses of Terra-Luna, Three Arrows Capital, and FTX—were orchestrated while Genesis was insolvent, and insiders knew the business was on the brink of collapse.
Why can’t I read the full complaint?
We expect a version of the complaint will become public in the near future. The LOC is dedicated to transparency and will provide updates in real time.
Does the LOC intend to initiate new claims in the future?
The LOC has the authority to pursue additional claims that fall within the scope of the Retained Causes of Action authorized under the Chapter 11 Plan. The LOC is pursuing multiple legal claims and will continue its work over the coming months to advance these cases and maximize recovery for creditors.
When will the lawsuits filed by the LOC be resolved?
Litigation timelines can vary depending on court schedules, procedural developments, and whether the cases are settled or proceed through trial. While it is difficult to predict an exact end date, the LOC is committed to pursuing any cases diligently and will provide updates as major milestones occur.
RECOVERY DETAILS
Why is the LOC seeking in-kind recovery?
In-kind recovery is the only path to making creditors whole. Returning assets in-kind ensures creditors have the opportunity to reclaim the full value of what their loaned assets.
What does the LOC allege creditors are owed?
Creditors are still owed over 1 million coins valued at currently worth over $2 billion and rising in value, which includes 19,086 bitcoin, 69,197 ether, and 17,168,249 other coins as of February 9, 2025.
When can eligible creditors expect to receive recovery and how will it be distributed?
The timing and amount of any future recoveries will depend on the outcomes of ongoing litigation and court processes. The LOC is actively pursuing all available legal avenues to maximize creditor recovery.
STAYING INFORMED
Where can I find more information on Genesis’s restructuring process?
For information regarding Genesis’s restructuring process, please refer to the company’s claims agent website at https://restructuring.ra.kroll.com/genesis.
How can I stay informed about the LOC’s work?
The LOC will publish regular updates on our homepage and through our X (Twitter) account @TheGenesisLOC.
Can creditors assist or support the LOC’s efforts?
Creditors can help strengthen the LOC’s mission by staying informed, amplifying updates and official messaging through social channels, and sharing any relevant information that could assist in the ongoing litigation efforts.