Grayscale investment products are no substitute for BTC, Genesis creditors say, and there’s still the matter of late fees.
Although Digital Currency Group (DCG) claimed that it has repaid its entire debt to bankrupt cryptocurrency lender Genesis, an ad hoc group of Genesis creditors has said in court papers filed in the Southern District of New York Bankruptcy Court that DCG has a substantial debt remaining.
Unpaid interest and late fees amount to $26 million, the creditors told the court on Jan. 8. In addition, there is a question about the form of payment:
The “illiquid instruments” the creditors referred to were Grayscale Ethereum Classic Trust (ETCG) and Grayscale Ethereum Trust (ETHE), which had been held as collateral. As of early December, ETCG was selling at a 69% discount to its net asset value, and ETHE was selling at a 50% discount. Those funds have not been approved by the United States Securities and Exchange Commission and are sold over the counter.
