A bankruptcy court has approved Genesis Global’s Chapter 11 liquidation plan, enabling the return of approximately $3 billion in cash and cryptocurrency to its customers. This approval prioritizes unsecured creditors over equity holders like Digital Currency Group (DCG), which will not receive recovery from the bankruptcy. Judge Sean Lane emphasized that the plan's goal is to maximize recoveries to unsecured creditors, who were significantly affected by DCG’s conduct. The ruling also includes a settlement with the New York Attorney General, ensuring that assets return to former Earn program customers rather than state authorities. Genesis, which filed for bankruptcy in January 2023, will now proceed with the distribution of assets, frozen since November 2022. The court's decision marks a pivotal step in the resolution of one of the significant cryptocurrency bankruptcy cases, aiming to restore assets to affected parties.
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