TechFlow news, creditors of Genesis Global Capital (GGC) have criticized a $175 million deal with bankrupt exchange FTX, accusing GGC of attempting to "buy votes" by "manipulating" the bankruptcy process.
The proposal has angered other creditors who are seeking to recover billions of dollars in debt. Since the bankruptcy plan requires voting proportional to creditors' claim amounts, creditors are effectively alleging that Genesis is trying to manipulate the vote.
A spokesperson for Genesis has not commented on the matter. Previously, Genesis's legal counsel stated that the FTX transaction would help the company reorganize without costly litigation.
Additionally, another group of creditors claimed that FTX is attempting to recover loans from what they called a "criminal enterprise," calling the effort "unethical." However, they did not disclose their identities.
