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Genesis Wins Court Approval for $3 Billion Chapter 11 Distribution with 77% Recovery for Creditors

May 18, 2024, 04:50 AM

Bankrupt crypto lender Genesis has won court approval to distribute approximately $3 billion in digital assets and cash to creditors under an approved Chapter 11 liquidation plan. The plan, approved by Judge Lane from the Southern District of New York, allows creditors to recover up to 77% of their funds. This decision prioritizes creditor claims over the equity stake of Genesis's parent company, Digital Currency Group (DCG), which will receive no recovery. The court rejected DCG's proposal, which tied repayments to cryptocurrency values at the time of Genesis's bankruptcy filing in January 2023.