Court Approves Genesis Global’s $3B Payout
After filing for bankruptcy in January 2022 due to the collapse of several major cryptocurrency firms, Genesis Global, a cryptocurrency lender, has received court approval to return approximately $3 billion in cash and cryptocurrency to its creditors.
However, this decision means that the company’s parent company, Digital Currency Group (DCG), will not receive any recovery from the bankruptcy.
On May 17, Judge Sean Lane approved Genesis’s Chapter 11 repayment plan, allowing the company to unfreeze and return customer assets that had been locked up since the company suspended withdrawals in November 2022.
DCG had objected to the plan, arguing that customers and creditors should only be paid the value of the crypto assets as of January 2023 when Genesis filed for bankruptcy.
However, Lane rejected this objection, citing the significant increase in Bitcoin’s price since then (from $24,000 to over $66,700 on May 17).
