🚀🌕 Bitcoin enthusiasts, here's a juicy update for you! U.S. Bankruptcy Judge Sean Lane has given the green light to Genesis Global's Chapter 11 liquidation plan. This means the bankrupt cryptocurrency lender is set to return a whopping $3 billion in cash and crypto to its creditors. 💸💰

Now, here's the twist: Digital Currency Group (DCG), Genesis' parent company, won't see a dime from the bankruptcy proceedings. DCG had argued that repayments should be capped at the cryptocurrency prices as of January 2023, when bitcoin was valued at $21,084. But guess what? Bitcoin's price has since soared to around $66,900. 📈💹

Judge Lane sided with Genesis, stating that even if customer claims were capped at lower prices, the company would still have to pay numerous other creditors. As a junior stakeholder, DCG finds itself at the bottom of the repayment hierarchy. In Judge Lane's words, "There are nowhere near enough assets to provide any recovery to DCG in these cases." Ouch! 😬

Genesis attorney Sean O’Neal confirmed the company's commitment to reimbursing customers in cryptocurrency where possible, despite the digital assets falling short of the total amount owed.

Genesis filed for bankruptcy in January 2023 after a liquidity crisis. The firm owes over $3.5 billion to its top 50 creditors, including Gemini. After liquidating $1.6 billion in assets, Genesis proposed a plan estimating that creditors who lent digital assets could recover up to 77%, a higher rate than if DCG had won in court. This proposal gained broad support from creditors, including customers of the Gemini Earn program.

Judge Sean Lane has since approved Genesis’ bankruptcy plan and a related settlement with New York Attorney General Letitia James, redirecting assets to former Earn customers instead of state authorities. Lane also approved a settlement with the U.S. Securities and Exchange Commission, ending a complaint over the now-terminated Earn program. 🏛️👨‍⚖️

Stay tuned for more updates in the crypto world! 🌐💫