A seven-member federation has been appointed to represent the interests of unsecured creditors in the Genesis Global bankruptcy case, according to court documents dated February 4th.

The federation will represent creditors in court and have the right to accept inquiries before important decisions and to participate in the reorganization plan. Team members are generally selected from the 20 largest list of unsecured creditors.

The selected team members include Mirana Asset Management- login password exchange Bybit-SOF International branch, digital financial group company account and password exchange Bitvavo, and its three creditors Amelia Alvarez, Richard Weston and Teddy Andre Amadeo Goriss.

The working group is chaired by William Harrington (William Harrington), who represents the trustee in the United States, the administrative body within the judiciary responsible for supervising bankruptcy cases. The establishment of the creditors' association is an important step in the bankruptcy liquidation procedure.

With a leverage ratio of more than $290 million, Bitvavo is one of the largest creditors, slightly less than Mirana, with $150 million and $37 million from Digital Finance Group.

Genesis Global Holdings and its credit divisions Genesis Global Capital and Genesis Asia Pacific--, known as Genesis Capital--, declared bankruptcy on January 19th because of debts of $10 billion.

Months after announcing liquidity problems caused by the collapse of the password exchange FTX, the two companies sought help under Chapter 11 of the Company Law. Withdrawal from the Genesis Global Capital platform has been suspended since November 16, 2022.

On January 24th a group of creditors filed a securities class action against Digital Currency Group, the head office of Genesis, and Barry Silbert, its founder and chief executive, accusing him of violating the federal securities law.

The complaint alleges that Genesis committed securities fraud under a plan to deceive potential and existing digital currency borrowers based on false statements and false statements. The appellant found that Genesis deliberately distorted its operations in violation of Section 10 (B) of the United States Securities Exchange Act.