US Bankruptcy Court Approves Genesis' Multi-Billion Dollar Chapter 11 Repayment Plan
CryptoNewsTerminal Staff18 May, 2024
US Bankruptcy Court Approves Genesis' Multi-Billion Dollar Chapter 11 Repayment Plan
Genesis Chapter 11 Repayment Plan Approved A US bankruptcy court has approved cryptocurrency lender Genesis' Chapter 11 repayment plan, paving the way for the distribution of billions of dollars worth of digital assets and cash to creditors. The court's ruling was made over the objection of Genesis' parent company, Digital Currency Group (DCG). The plan was approved by Judge Sean Lane, who rejected DCG's objections. The court ruled that DCG lacked legal standing to challenge the Chapter 11 plan. Under the plan, creditors will recover up to 77 cents on the dollar. DCG had previously argued that the plan was unfair to creditors. The company claimed that the claims of creditors should be valued as of the date Genesis filed for bankruptcy in early 2023, when crypto prices were trading much lower. However, Judge Lane rejected DCG's arguments. The court ruled that the plan was fair and equitable to all creditors. The approval of the Chapter 11 repayment plan is a major step forward for Genesis. The company can now begin the process of distributing funds to creditors.
