Genesis Global has received court consent for more than $3 billion in cash and cryptocurrency return to the crypto clients as an execution of a Chapter 11 bankruptcy liquidation plan.
U. S. bankruptcy judge Sean Lane dismissed objections to Grayscale investors from Digital Currency Group (DCG) seeking to limit their client’s exposure to prices beyond what they held in January 2023. The banker and the investor disagreed about the fairness of the situation which didn’t favor the former.
Genesis estimates it will be able to repay claims from at least 77% of its customers as long as the value of Bitcoin does not fall however, it faces even more obligations to state and federal regulators for $32 billion.
Recently, Genesis, after a settlement with the SEC, paid a $21 million penalty related to the accusations over its Gemini Earn lending program. The present resolution targets Genesis’ troubles with the financial market last November that prompted investor withdrawals suspended for several months.
