Failed Crypto Firm Genesis Approved to Repay Creditors Billions

Bankrupt crypto lender Genesis Global Capital won court approval of its plan to distribute billions of dollars in digital assets and cash to creditors, defeating a legal challenge brought by its corporate parent Digital Currency Group.

Judge Sean Lane said late Friday he’d confirm Genesis’ Chapter 11 repayment plan which includes a unique structure for returning Bitcoin and other tokens to creditors. The decision clears Genesis’s path to return customer assets that have been frozen on the platform since the firm paused withdrawals in November 2022 following the collapse of other major crypto firms.

Judge Lane rejected DCG’s legal ...