Gemini Earn Will Return Customers’ Crypto by End of Month

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A US court has approved the bankruptcy plan of Genesis, a bankrupt crypto lender that collapsed due to the failure of the Terra/luna ecosystem and Three Arrows Capital.

Despite objections from Digital Currency Group (DCG), the owner of Genesis, and other parties, the plan will return about $3 billion in cash and assets to creditors.

The judge rejected DCG’s argument that claims should be valued in US dollars at the time of the bankruptcy filing in January 2023, saying this would not provide enough value to cover creditors.

The plan instead allocates assets based on the type of claim and values them differently, with cryptocurrency creditors being treated separately from those owed US dollars.

The judge also dismissed DCG’s objection, stating that they have no economic stake in the plan as there is not sufficient value left in the company’s assets to provide them with a recovery as an equity holder.