- Bankruptcy judge approves Genesis Global's plan.
- Genesis will return about $3 billion to creditors.
- Corporate parent DCG is 'out of the money.'
Genesis will return about $3bn to creditors
Bankruptcy Judge Sean Lane late Friday approved failed crypto lender Genesis Global’s Chapter 11 liquidation plan, which will pay back its creditors about $3 billion in crypto and cash, according to media reports.
Judge Lane, at the US District Bankruptcy Court for the Southern District of New York in Manhattan, overruled an objection raised by Genesis’ corporate parent, Digital Currency Group, arguing that creditors should receive no more than the value of their crypto assets when Genesis filed for bankruptcy in early 2023, Reuters reported.
Bitcoin was worth about $21,000 in January 2023, compared with about $67,000 today.
Parent DCG is last in line for repayment under Chapter 11, Judge Lane said, adding that whatever value Genesis has remaining will go to creditors, who still won’t be fully repaid, Bloomberg reported.
“Given the size of the creditor claims, DCG is out of the money as an equity holder by billions of dollars,” Judge Lane added.
DCG could appeal the decision.
Genesis had estimated earlier this year that creditors may recover as much as 77% of their assets under its plan.
Crypto market movers
- Bitcoin is up 1.37% today at $67,221.12.
- Ethereum is up 2.86% today at $3,107.14.