Genesis Creditors to Receive 97% Payout by May
The post Genesis Creditors to Receive 97% Payout by May appeared on BitcoinEthereumNews.com.
Genesis Global has been given the green light by the bankruptcy court to start a payout plan that will give back almost 97% of its assets to its creditors. The decision was made after the court found that the Amended Plan proposed by Genesis is suitable for confirmation, thus allowing the disbursement of billions in digital assets. Genesis Creditors to Receive 97% Payout On May 17, 2024, Judge Sean Lane of the Bankruptcy Court confirmed Genesis Chapter 11 repayment plan, which also includes cryptocurrencies like Bitcoin to be returned directly to the creditors. This method is in contrast to the other bankruptcy cases for instance FTX’s that proposed repayments in USD. The court also endorsed Genesis’s settlement with New York Attorney General Letitia James, that was related to the previously controversial Earn program. Earn Update: Yesterday, the Bankruptcy Court issued a decision (i) finding that Genesis’s Amended Plan should be confirmed and (ii) approving Genesis’s settlement with the New York Attorney General. While this is a welcome decision for Genesis creditors, it does not impact the… — GeminiTrustCo (@GeminiTrustCo) May 18, 2024 The approval is the crucial step that Genesis needed to be able to release customer assets frozen since November 2022, when the firm stopped withdrawals in a market downturn. The Genesis creditors, including the users of the Gemini Earn program, solidly supported the plan suggesting that all stakeholders were relieved. Legal Challenges and Settlements During the bankruptcy process, Genesis’s parent company, DCG, had legal problems, with Judge Lane dismissing one of its challenges against the repayment plan. In his 135-page judgment, Judge Lane pointed out that DCG, as an equity holder, was the last in line for repayment and, therefore, “out of the money” significantly. Besides this internal conflict, the court’s approvals also included a settlement with the…
Filed under: News - @ May 19, 2024 3:26 pm