In a recent ruling, the court has given the green light to Genesis Global Capital's repayment plan worth $3 billion, dismissing objections from Digital Currency Group (DCG). This decision by Judge Sean Lane paves the way for Genesis to unfreeze customer assets that have been held since November 2022.

Genesis Chapter 11 Repayment Plan Officially Approved

After more than a year since Genesis Global Capital filed for bankruptcy, the Chapter 11 repayment plan has finally been officially approved by the court on Friday, May 17th.

Judge Sean Lane has endorsed the unique structure of the plan, which aims to return Bitcoin and other cryptocurrencies to creditors. The plan has received significant support from Genesis' creditors and customers of the Gemini Earn program, a lending initiative in collaboration with Gemini Trust Co., founded by the Winklevoss brothers.

Challenges from the Parent Company

Digital Currency Group, the parent company of Genesis, opposed the repayment plan, arguing that the increase in cryptocurrency prices should not benefit creditors at its own expense. DCG contended that creditor claims should be based on cryptocurrency prices at the time of Genesis' bankruptcy filing in early 2023, rather than the current market value.

Despite DCG's objections, Judge Lane rejected their claims, stating that the parent company lacks the legal standing to challenge Genesis' Chapter 11 plan. The court emphasized that DCG, as an equity holder, stands last in line for repayment, with Genesis' creditors being the priority.

Resolutions for Gemini Earn Program

Judge Lane also approved settlements with the New York Attorney General and the US Securities and Exchange Commission related to Genesis' Gemini Earn program. These settlements ensure that former Gemini Earn program customers will receive assets owed to them, resolving legal challenges faced by Genesis.

In conclusion, the court's approval of Genesis' Chapter 11 plan allows for the distribution of around $3 billion in cash and cryptocurrency to creditors and Gemini Earn program customers. While Genesis moves towards repayment, DCG remains in a subordinate position in the bankruptcy proceedings.