$BTC
A little sad story ๐ข
Genesis Global Trading has repaid a large portion of its debts to creditors as part of its restructuring plan after declaring bankruptcy. The company agreed to a $3 billion settlement that includes the distribution of digital and cash assets to creditors. The bulk of these funds were allocated to settle legal claims and outstanding debts, including a $2 billion settlement with the New York Attorney General to compensate investors harmed by the Gemini Earn program.
The beginning of the payment process included transferring about $1.5 billion in Bitcoin and Ethereum to addresses designated for creditors.
In May 2024, Genesis Global received court approval to return approximately $3 billion in cash and cryptocurrencies to its creditors. This plan came after the company declared bankruptcy in January 2023 and frozen customer funds since November 2022 due to a liquidity crisis.
The decision was approved by Judge Shawn Lin, who rejected the objection of the parent company, Digital Currency Group (DCG), which demanded that the assets be paid according to their value in January 2023. Creditors with US dollar claims will receive 100% of their balances, while cryptocurrency claimants will see some Decrease.
The frozen assets of clients have been transferred following this decision, marking a step towards returning funds to affected investors.