Genesis Global Gets Approval to Return $3 Billion to Customers.

Judge Sean Lane has affirmed a Chapter 11 repayment plan with a unique distribution structure for returning Bitcoin and other tokens to creditors. This decision permits the return of assets to customers whose withdrawals were frozen since November 2022.

The ruling also dismissed an objection from Genesis' parent company, Digital Currency Group (DCG), which argued that Genesis should pay much less to customers and creditors than the crypto asset value at the time of its January 2023 bankruptcy filing. Judge Lane agreed, indicating that the available value would go to claims not fully paid, leaving DCG with a substantial financial shortfall.

#Cryptocurrency prices have surged since Genesis filed for bankruptcy, creating a dispute between DCG and Genesis over who benefits from these price increases. DCG argued that creditor claims should be based on the cryptocurrency prices at the time of the bankruptcy filing, when #Bitcoin was around $24,000, compared to over $66,700 recently. Lane concurred, emphasizing that Genesis must prioritize other creditors, including financial regulators with $32 billion in claims, before addressing DCG's claims.