Genesis Creditors to Receive 97% Payout by May Following Court Nod

by

As a long-term crypto investor, I’m elated by the news that Genesis creditors are set to receive a 97% payout. After going through the ups and downs of the crypto market for years, I understand the importance of transparency and accountability in the industry. The court’s approval of Genesis’ repayment plan is a significant step towards restoring trust in the digital asset sector.

The bankruptcy court has approved Genesis Global’s proposal to distribute approximately 97% of their assets to their creditors.

After the court determined that Genesis’s revised plan was acceptable, they gave the green light for distributing vast sums of digital assets.

Genesis Creditors to Receive 97% Payout

On May 17, 2024, Judge Sean Lane of the Bankruptcy Court approved Genesis Chapter 11’s repayment plan. This plan allows for the return of cryptocurrencies such as Bitcoin straight to the creditors.

In contrast to other bankruptcy proceedings, such as FTX’s, this method does not involve proposed repayments in USD. Additionally, the court has approved Genesis’s agreement with New York Attorney General Letitia James concerning the former’s contentious Earn program.

Yesterday, the Bankruptcy Court passed a ruling: (1) approving Genesis’s revised reorganization plan and (2) endorsing its agreement with the New York Attorney General. This development brings relief to Genesis’s creditors, yet it doesn’t influence the ongoing proceedings regarding…

— GeminiTrustCo (@GeminiTrustCo) May 18, 2024

To move forward with releasing the customer assets that have been frozen since last November, Genesis necessitates approval. This critical step became necessary following the firm’s halt of withdrawals during a market downturn. The Genesis creditors, including Gemini Earn program users, have strongly endorsed the proposal, indicating widespread relief among all parties involved.

Legal Challenges and Settlements

As a researcher studying Genesis’s bankruptcy case, I came across an interesting development during the proceedings. The parent company of Genesis, Digital Currency Group (DCG), encountered legal issues that resulted in one of their challenges against the repayment plan being dismissed by Judge Lane. In his comprehensive 135-page judgment, Judge Lane highlighted DCG’s position as an equity holder and emphasized that they were at the back of the line for repayments. Consequently, DCG found themselves significantly “out of pocket” or “out of funds” in this financial restructuring process.

As an analyst, I’d rephrase that as follows: In addition to grappling with internal issues, our company reached an agreement with the New York Attorney General, settling a dispute over the Genesis Earn program’s operations, as part of the court’s approval.

As a researcher studying this issue, I would describe it as follows: This development transfers the potential consequences of the Earn fiasco away from state funds and onto those directly impacted. This shift is viewed as a triumph by the ex-Earn users.

Enhancing Security Ahead of Payouts

As a crypto investor, I’m excited about the upcoming asset distribution from Genesis. In preparation for this event, Genesis has implemented a new security measure for customer accounts. This feature, called Approved Addresses, requires users to go through a vetting process before they can transfer their digital assets to external wallets. The approval process may take up to seven days to complete.

At this point in Genesis’s bankruptcy proceedings, steps are being taken to safeguard creditors’ assets. The business has indicated that these modifications will be implemented, but normal trading, storage, and fiat withdrawal processes for those not electing to transfer crypto externally will remain unchanged.

Ripple CEO Names Key Highlight of XRP Ledger (XRPL) Q1 Performance

Read More

2024-05-18 22:48