Genesis Global Court-Approved $3B Payout to Customers 😱🚀

The Genesis Global Bankruptcy Saga Unfolds 📉

A US bankruptcy court has recently approved the liquidation plan of crypto lender Genesis Global to reimburse approximately $3 billion to its creditors. Judge Sean Lane, in a memorandum decision, affirmed that Genesis’ Chapter 11 liquidation plan is justifiable and presented in good faith, meeting all legal requirements.

Judge Lane confirmed the Plan, ensuring payment to unsecured creditors.
Genesis parent company Digital Currency Group (DCG) expressed dissent.
DCG disagreed with the plan as it offers no recovery for equity holders.

A Blow to Digital Currency Group 💥

In his ruling, Lane pointed out that DCG contested a plan where it holds no economic interest. The court acknowledged DCG’s objection but emphasized the lack of assets for recovery owing to insolvency.

DCG’s Argument & Consequences

DCG filed a motion against the bankruptcy plan in February.
The bankruptcy lacks assets for equity holder recuperation.
DCG faces substantial loss due to creditor claims surpassing available assets.

Genesis Customer Funds Frozen 🥶

Genesis customers have been facing frozen funds since November 2022. The now-defunct lender suspended withdrawals due to liquidity issues stimulated by the collapse of crypto hedge fund Three Arrows Capital.