Bankrupt Crypto Lender Genesis Secures Court Approval for Repayment Plan
In a win for creditors, a bankruptcy judge has approved a repayment plan for bankrupt crypto lender Genesis Global. This plan allows Genesis to distribute billions of dollars worth of digital assets and cash to those it owes money to.
The decision comes after Genesis, a subsidiary of Digital Currency Group (DCG), filed for Chapter 11 bankruptcy earlier this year. The company faced financial difficulties due to the recent crypto market downturn.
Key Details of the Repayment Plan
The court-approved plan allows creditors to recover up to 77% of their owed funds. This repayment will come in a combination of digital assets and cash, with the specific allocation still being determined.
The plan also involved overcoming a legal challenge from DCG, Genesis’ parent company. However, the judge ultimately ruled in favor of Genesis’ proposal.
What This Means for the Crypto Industry
The approval of Genesis’ repayment plan is a positive development for the crypto industry. It demonstrates a willingness of the courts to work with bankrupt crypto companies to find solutions that benefit creditors. This could help restore confidence in the industry and encourage further investment.
