The Internal Revenue Service (IRS) and the Securities and Exchange Commission (SEC) have joined the list of creditors in the Genesis case, lawyer representative: negotiations to be completed this week

The Block cited legal documents indicating that the Internal Revenue Service (IRS), the Securities and Exchange Commission (SEC), and the U.S. Attorney's Office for the Southern District of New York have been added to the list of creditors in the Genesis bankruptcy.

The Block quoted legal documents indicating that the U.S. Internal Revenue Service (IRS), the Securities and Exchange Commission (SEC), and the U.S. Attorney's Office for the Southern District of New York have been added to the list of creditors in the Genesis bankruptcy.

Law firm Norton Rose Fulbright US LLP and non-profit organization Stellar Foundation, previously mentioned in reports, have been removed from the list of creditors, with specific reasons yet to be confirmed.

The total amount of Genesis' debts exceeds $3.5 billion, and during the bankruptcy filing, it was emphasized that there is still $150 million in cash to support the original business operations and the bankruptcy reorganization process.

The SEC mentioned in previous charges:

Gemini Earn users provide cryptocurrency assets to Genesis, with Gemini acting as an agent to facilitate transactions. Gemini deducts agent fees from returns paid to Gemini Earn investors, sometimes as high as 4.29%, while Genesis generates revenue through users' cryptocurrency assets and pays interest to Earn users. "We believe Gemini and Genesis are offering unregistered securities to retail investors."

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Additionally, according to CoinDesk reports, Genesis' representative lawyers stated during the initial hearing that they are negotiating with creditor representatives and hope to reach an agreement with creditors before the weekend. Lawyer Sean O'Neal emphasized that Genesis has planned a complete schedule to expedite the end of the bankruptcy process.

Another lawyer, Jane VanLare, pointed out that Genesis is considering selling its subsidiaries and raising funds to repay creditors. If no entities are ultimately sold, the equity of Genesis' parent company, Genesis Global Holdco, LLC, will be distributed to the creditors.