Genesis Wins Court Approval to Distribute $3 Billion to Creditors with 77% Recovery, DCG Receives No Recovery

May 18, 2024, 08:31 AM

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