What is the status of Genesis’ bankruptcy process and how will creditors be compensated?

## Genesis Bankruptcy Plan Approved: Creditors to Receive Compensation

The Genesis Chapter 11 Bankruptcy Process

Genesis, a prominent cryptocurrency lender, filed for Chapter 11 bankruptcy in January 2023. The company cited a “global resolution” for its clients as the reason behind this move.

Genesis Bankruptcy Plan Approved

On Friday, a bankruptcy court approved Genesis’ plan, which aims to return $3 billion to customers. The plan was met with some objections from parties involved, including Digital Currency Group (DCG), which is a significant stakeholder in Genesis.

Genesis Creditors to be Compensated

According to the bankruptcy plan, creditors will be compensated “in the form of the original assets they loaned as much as possible.” This approach prioritizes returning the actual assets loaned rather than limiting compensation to the USD value of the cryptocurrency assets on the petition date. This method ensures that creditors benefit from the potential future appreciation of cryptocurrency assets.

Victims’ Fund Established

The settlement also establishes a Victims’ Fund, which will receive up to $2 billion from Genesis’ remaining assets after bankruptcy distributions to creditors. The Victims’ Fund will compensate creditors for any remaining losses they may have incurred.

Genesis’ Commitment to Creditors

“Our goal throughout this process has been to maximize value for all creditors,” said Derar Islim, interim CEO of Genesis. “We look forward to putting the Plan into effect and making distributions as expeditiously as possible.”

Quotes from the Attorney General’s Office

“This historic settlement is a major step toward ensuring the victims who invested in Genesis have a semblance of justice,” said Attorney General Letitia James. “Once again, we see the real-world consequences and detrimental losses that can happen because of a lack of oversight and regulation within the cryptocurrency industry.”

Going Forward

The bankruptcy process for Genesis is ongoing, and the company continues to work towards distributing funds to creditors. The Victims’ Fund will provide additional compensation for those who have suffered losses. The settlement marks a significant development in the cryptocurrency industry, highlighting the importance of regulation and investor protection.