Genesis To Reimburse Customers In Bitcoin And Ethereum Claims

According to Odaily, Genesis, a cryptocurrency lending institution, has been approved by the court to return approximately $3 billion in cash and cryptocurrency to its customers during bankruptcy liquidation. The approval was granted by U.S. Bankruptcy Judge Sean Lane, who dismissed objections from Genesis' parent company, Digital Currency Group (DCG). DCG had argued that the amount Genesis paid to its customers and creditors should not exceed the value of its crypto assets when it filed for bankruptcy in January 2023. Lane dismissed DCG's objections, ruling that even if customer claims were capped at lower prices, Genesis would still have to pay many other creditors, including federal and state financial regulators who allegedly claimed $32 billion, before it could pay its shareholder DCG. Lane wrote, 'In these circumstances, there are not enough assets to provide any compensation to DCG.' Genesis is trying to pay its customers as much as possible in cryptocurrency, but it does not have enough cryptocurrency to repay all the money it owes. The company estimated in February that it would be able to pay customers up to 77% of the claim value, depending on future cryptocurrency price fluctuations. As of now, the claim rate for Bitcoin or Ethereum claims over $10 million in Genesis is between 97% and 110%, while the claim rate for claims under $1 million is between 74% and 94%. For accounts valued between $1 million and $10 million, the transaction ratio of legal currency or stable coin claims in Genesis accounts is 89%-91%, and for claims valued less than $1 million, the transaction ratio is 73%-88%.