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<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/genesis-distributes-crypto-to-creditors" rel="noopener noreferrer nofollow">Genesis Distributes Crypto to Creditors</a><br></p>
<p style="text-align: justify">Genesis Global, a cryptocurrency lending firm that filed for bankruptcy in 2022, has secured court approval to distribute billions in cryptocurrency to its creditors. This approval comes shortly after a similar move by the FTX exchange, marking Genesis’s second significant debt repayment initiative.</p>
<h2 id="what-is-genesis-s-repayment-plan">What is Genesis’s Repayment Plan?</h2>
<p style="text-align: justify">On May 17, Judge Sean Lane endorsed Genesis’s Chapter 11 repayment plan, allowing the company to repay creditors in <a href="https://en.bitcoinhaber.net/bitcoins-resistance-before-the-halving-analyst-predicts-46000-cap" rel="noopener noreferrer nofollow">Bitcoin</a> (BTC) and other altcoins rather than US dollars. This ruling permits Genesis to commence returning customer assets frozen since November 2022, following the collapse of several major cryptocurrency firms.</p>
<p style="text-align: justify">Genesis’s repayment plan has posed challenges for its parent company, Digital Currency Group (DCG), which recently encountered legal issues. Judge Lane dismissed DCG’s objections, emphasizing that as an equity holder, DCG did not have the legal standing to contest the Chapter 11 plan.</p>
<h2 id="how-will-creditors-benefit">How Will Creditors Benefit?</h2>
<p style="text-align: justify">Creditors who lent cryptocurrency to Genesis could recover up to 77% of their funds according to the proposal, a significantly higher percentage compared to potential returns if DCG’s objections had been upheld. The plan received robust support from creditors, including Gemini Earn customers, a lending program operated in association with Gemini Trust.</p>
<p style="text-align: justify">Judge Lane also signaled approval for a settlement with New York Attorney General Letitia James, ensuring assets would be returned to former Gemini Earn customers rather than state authorities. Additionally, a separate agreement with the U.S. Securities and Exchange Commission (SEC) regarding the defunct Gemini Earn program was also sanctioned by the court.</p>
<h2 id="key-takeaways-for-investors">Key Takeaways for Investors</h2>
<p style="text-align: justify">Key inferences for stakeholders include:</p>
<ul>
 <li>Genesis creditors might recover up to 77% of their funds.</li>
 <li>DCG’s legal objections were overruled, emphasizing creditor priority.</li>
 <li>Settlements with the New York Attorney General and the SEC ensure asset returns to Gemini Earn customers.</li>
 <li>Potential impacts on the cryptocurrency <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow" target="_blank">market</a> due to asset liquidation.</li>
</ul>
<p style="text-align: justify">The court’s decision to approve Genesis’s Chapter 11 repayment plan marks a pivotal step in the company’s bankruptcy process, aiming to provide some relief to its creditors. Moving forward, Genesis focuses on the plan’s implementation, with attention on its effects on the broader cryptocurrency market.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/genesis-distributes-crypto-to-creditors" rel="noopener noreferrer nofollow">Genesis Distributes Crypto to Creditors</a></h5>

Genesis Distributes Crypto to Creditors

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