Bankrupt Crypto Lending Firm Genesis Global To Return $3 Billion To Clients

According to PANews, Genesis Global, a bankrupt cryptocurrency lending company, has received court approval to return approximately $3 billion in cash and cryptocurrencies to its clients during bankruptcy liquidation. The firm's parent company, Digital Currency Group (DCG), will not receive any funds from this distribution. U.S. Bankruptcy Judge Sean Lane approved Genesis's Chapter 11 liquidation plan and dismissed objections raised by DCG, who argued that the amount Genesis pays to clients and creditors should not exceed the value of its crypto assets at the time of its bankruptcy filing in January 2023. Since Genesis filed for bankruptcy, the price of cryptocurrencies has significantly increased, leading to disagreements between DCG and Genesis over who should benefit from the price rise. For instance, the value of Bitcoin in January 2023 was $21,084, while its current price is $67,000. Lane dismissed DCG's objections, ruling that even if customer claims are capped at lower prices, Genesis must pay many other creditors, including federal and state financial regulators claiming to have $32 billion in claims, before it can pay DCG.