Crypto lender Genesis Global obtained court approval Friday to return approximately $3 billion to its customers as part of its bankruptcy liquidation. U.S. Bankruptcy Judge Sean Lane approved Genesis’ Chapter 11 plan, overruling an objection from its equity owner, Digital Currency Group (DCG), which argued that repayments should be based on January 2023 cryptocurrency values. The surge in crypto prices since then led to disputes over the benefits. Lane ruled that Genesis must prioritize other creditors, including financial regulators with $32 billion in claims, before any recovery for DCG. Genesis will repay customers in cryptocurrency where feasible but lacks sufficient assets to meet all obligations. “There are nowhere near enough assets to provide any recovery to DCG in these cases,” Lane explained.
Court Approves Crypto Lender Genesis' $3 Billion Payout to Customers
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