- In a May 17 ruling, the presiding Judge approved Genesis’ Chapter 11 repayment plan.
- Genesis Global will return $3 billion in cash and crypto to its creditors.
- Distribution of funds to creditors will take precedence over parent company Digital Currency Group.
Judge Sean Lane approved Genesis Global’s Chapter 11 repayment plan in a court ruling on Friday, May 17. In the ruling, the Judge rejected parent company DCG’s objection that Genesis could not pay its creditors more than the value of its assets at the time it filed for bankruptcy in January 2023.
Nearly $3 billion payout has been approved by the court.
Genesis Global to pay its dues to creditors
Genesis Global received court approval to return $3 billion in cash and crypto to its creditors. The parent company Digital Currency Group (DCG) claims may be returned after the creditors are paid off their dues.
In a May 17 court ruling, the presiding judge Sean Lane rejected an objection raised by DCG stating that Genesis cannot pay back its customers and creditors more than the value of its crypto assets at the time the firm filed for bankruptcy in January 2023.
The Judge stated that any funds available for distribution will take precedence over DCG’s claims. At the time that Genesis filed for bankruptcy, Bitcoin was $24,000, it has surged to $66,964, a significant spike in BTC.
1/ An update on the Genesis bankruptcy: Judge Lane from the Southern District of New York court today approved the Genesis bankruptcy plan to return value from the Genesis estate back to creditors and rejected @BarrySilbert's objections. https://t.co/p85uM96Imf
— Vijay Boyapati (@real_vijay) May 18, 2024
The bankruptcy plan has been accepted and will be used to repay creditors irrespective of the change in asset prices.
The firm has been working to liquidate nearly $1.6 billion in assets after failure to settle with parent company DCG.
(This story was corrected on May 20 at 04:57 GMT to say that the name of the cryptocurrency lender is Genesis Global, not Genesi Global.)
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