April

Billion

<a href="https://bitcoinworld.co.in/genesis-set-to-return-3-billion-in-customer-assets-with-finalized-bankruptcy-liquidation-plan/" title="Genesis Set To Return $3 Billion In Customer Assets With Finalized Bankruptcy Liquidation Plan" rel="noopener noreferrer nofollow"></a>
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  <p>Genesis will return $3 billion in customer assets under a court-approved liquidation plan. This represents 77% of the value of customer claims. Bankruptcy claims initially traded at 35% of account balance value on claim trading marketplace Xclaim.</p>
  <p>When&nbsp;<a href="https://www.coinbackyard.com/blockchain/understanding-blockchains-genesis-block/" target="_blank" rel="noopener noreferrer nofollow">Genesis&nbsp;</a>filed for bankruptcy, the market was skeptical about customer repayment. Xclaim listed Genesis claims at 35% of their value in January 2023. Now, claims for bitcoin or ether over $10 million trade at 97-110%.</p>
  <p>Claims under $1 million trade at 74-94%. Fiat currency or stablecoin claims for accounts between $1-10 million trade at 89-91%. Claims under $1 million trade at 73-88%.</p>
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   <p>Genesis recently received court approval to distribute $3 billion in cash and&nbsp;<a href="https://www.coinbackyard.com/cryptocurrency/what-are-crypto-trading-bots-a-beginners-guide/" target="_blank" rel="noopener noreferrer nofollow">cryptocurrency&nbsp;</a>to its creditors. Digital Currency Group (DCG), the parent company of Genesis, will not receive a payout. Judge Sean Lane stated there isn’t enough value in Genesis’s estate to cover DCG as an equity holder. Even if creditor claims were valued as DCG proposed, they are out billions.</p>
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   <h2 id="bankruptcy-background-and-financial-struggles">Bankruptcy Background and Financial Struggles</h2>
   <p>Genesis Global Holdco LLC, the holding company of Genesis, and its subsidiaries filed for Chapter 11 bankruptcy in New York in January 2023. This was due to significant losses from the collapses of Three Arrows Capital and&nbsp;<a href="https://www.coinbackyard.com/latest-news/bankman-frieds-parents-seek-ftx-lawsuit-dismissal/" target="_blank" rel="noopener noreferrer nofollow">FTX</a>. Over $3.5 billion is owed to its top 50 creditors. In response to the filing, the market doubted customers would be fully repaid.</p>
   <p>DCG previously argued that customer claims should be capped at the value of cryptocurrencies as of January 2023. They believed this would allow for full repayment to customers and potentially a recovery for DCG. Judge Lane noted DCG assumed $1.1 billion of Genesis’s debt from the Three Arrows Capital collapse with a 10-year promissory note. However, this illiquid obligation did not cover the losses, leading to scrutiny of DCG’s financial practices.</p>
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   <h2 id="dcg-and-genesis-s-credit-lines-and-repayment-plan">DCG and Genesis’s Credit Lines and Repayment Plan</h2>
   <p>DCG and Genesis had credit lines between them, and Genesis sued DCG over missed loan payments. In November 2023, DCG and Genesis reached a repayment plan. DCG has paid $227.3 million so far and plans to pay another $275 million by April to settle a lawsuit over $620 million in loans.</p>
   <p>Genesis’s court-approved liquidation plan marks a significant step in resolving its bankruptcy proceedings. Customers will recover 77% of their claims, but DCG will not receive a payout. This case highlights the complexities and challenges in the crypto bankruptcy landscape.</p>
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<p>The post <a href="https://bitcoinworld.co.in/genesis-set-to-return-3-billion-in-customer-assets-with-finalized-bankruptcy-liquidation-plan/" rel="noopener noreferrer nofollow">Genesis Set To Return $3 Billion In Customer Assets With Finalized Bankruptcy Liquidation Plan</a> appeared first on <a href="https://bitcoinworld.co.in" rel="noopener noreferrer nofollow">BitcoinWorld</a>.</p>

Genesis Set To Return $3 Billion In Customer Assets With Finalized Bankruptcy Liquidation Plan

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