Troubled digital currency company Genesis Capital saw its settlement disrupted by creditors in two months after the initial agreement, raising concerns about the timing of the process.

Genesis’ parent company, Digital Currency Group (DCG), took to Twitter on April 25 to issue a statement on Genesis filing a motion for mediation. The firm said that Genesis’ settlement could be troubled due to renewed demands from creditors.

In February, Genesis Capital submitted a comprehensive settlement to the bankruptcy court after reaching an “agreement in principle” with DCG and its creditors. Under the proposed restructuring plan, Genesis creditors eUnder the initial settlement plan, Genesis creditors were expected to receive 80% recovery of funds lost due to the bankruptcy.xpected 80% recovery of funds lost due to the firm’s collapsed operations.

A few months later, Genesis creditors eventually raised their demands, significantly disrupting the ongoing court process, according to DCG.

DCG noted that it remains committed to reaching a fair settlement deal for all and will have to take into account any new demands against previous concessions. 

(by Helen Partz)