DCG Learns Bankruptcy Is an Unfriendly Venue for Shareholders

In this edition of the Bloomberg Crypto newsletter, Jonathan Randles writes about the one car of the bankruptcy train you don’t want to ride in. Bankruptcy court is rarely friendly to a company’s owners. Barry Silbert’s Digital Currency Group just learned that the hard way after losing its bid to halt a plan to repay creditors of its bankrupt subsidiary, Genesis Global Capital. DCG took Genesis to trial over the plan and accused its bankrupt lending unit of crafting a deal that showered creditors with an impermissible windfall. Key creditor...