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CATEGORY: genesis global


May 21, 2024 12:25

Genesis Parent Will Not See Any Recovery amid $3 Billion Payout Approval

Genesis Global, a bankrupt crypto lender, has received court approval to distribute $3 billion in cash and cryptocurrencies to its creditors. However, the decision excludes its parent Digital Currency Group (DCG) from receiving any recovery from the bankruptcy.

The courts ruling on Friday cleared the company to unfreeze and return customers assets that were locked up since November 2022. The lender also shuttered all trading operations last year.

Another Failed Crypto Lender

Genesis filed for Chapter 11 bankruptcy protection in New York in January 2023 following the troubles it faced from its exposure to Three Arrows Capital, a collapsed crypto hedge fund, and FTX, which is also under bankruptcy process. At the time of bankruptcy, it owed over $3.5 billion to the top 50 creditors alone.

The approval of $3 billion in distribution only represents about 77 percent of the value of the customers claims. According to the court order, the creditors with claims in USD will receive 100 percent of their loan balance (deferring payment of post-petition interest) but creditors with claims in cryptocurrencies will bear a shortfall.

No Recovery for DCG

At the time of Genesis bankruptcy, the value of Bitcoin was around $24,000, which has now jumped to over $66,000. Previously, DCG argued that the value of the creditors recovery should be capped at the value of cryptocurrencies during the bankruptcy filing, allowing potential recovery of its assets, but the court rejected the proposal.

The record here clearly establishes that there is not sufficient value in the Debtors estates to provide DCG a recovery as equity holder after unsecured creditors are paid, Judge Sean Lane wrote in his ruling. Given the size of the creditor claims, DCG is out of the money as an equity holder by billions of dollars, even if the Court valued creditor claims using the method DCG proposes.

The court further pointed at the anomalies in DCGs financial practices as it assumed $1.1 billion of Genesis's debt from the Three Arrows Capital collapse with a 10-year promissory note. Genesis also sued DCG for failure of payment of a loan. DCG already paid $227.3 million of the loan and reached an agreement with Genesis last November to pay another $275 million by April.

Earlier this year, the US securities regulator also fined Genesis $21 million for operating an illegal crypto lending platform.

This article was written by Arnab Shome at www.financemagnates.com.

May 21, 2024 12:25

Genesis Hits the Wall with $2 Billion Settlement, Shown the Door in New York

New York Attorney General Letitia James has finalized asettlement worth $2 billion with the bankrupt cryptocurrency firms GenesisGlobal Capital, LLC, Genesis Asia Pacific PTE, LTD., and Genesis Global Holdco,LLC (collectively known as Genesis).

This settlement aims to maximize recoveries for investorswho experienced financial losses. It includes the creation of a victims' fundto compensate defrauded investors, among whom are at least 29,000 New Yorkerswho invested over $1.1 billion through the Gemini Earn program. Additionally,the settlement prohibits Genesis from conducting business in New York.

Settlement Reached in Genesis Bankruptcy Case

The settlement required approval from a bankruptcy court dueto Genesis' bankruptcy status. It marks the largest settlement against acryptocurrency company in New York State history. Attorney General Jamesemphasized the importance of this settlement in providing some level of justiceto the victims of Genesis' activities. The settlement continues James' effortsto enhance oversight and regulation within the cryptocurrency sector, havingsecured over $2.5 billion from various cryptocurrency platforms to date.

The Attorney General's office had previously filed a lawsuitin October 2023, accusing Genesis of hiding more than $1.1 billion in lossesfrom investors. This lawsuit was expanded in February to include additionalallegations of fraud involving Genesis and related entities. Under the terms ofthe settlement, Genesis does not admit to any wrongdoing, and the lawsuit willcontinue against other defendants, including Digital Currency Group, Inc. andits executives.

New York Attorney General James Secures Settlement Worth $2 Billion From Crypto Firm Genesis Global Capital For Defrauded Victims - Genesis Banned From Operating In New York https://t.co/J8e6TX7VXK

Mondo Visione (@ExchangeNews) May 20, 2024

Victims' Fund Set Up to Compensate Creditors

The newly established Victims' Fund will distribute the remainingassets from Genesis' estate to compensate creditors. If creditors are not fullyreimbursed based on current digital asset values, the fund may receive up to $2billion from Genesis' assets to cover losses.

Attorney General James encourages New Yorkers affected bydeceptive practices in virtual asset markets to report these issues to heroffice and urges industry workers who have witnessed misconduct to filewhistleblower complaints, which can be done anonymously.

This article was written by Tareq Sikder at www.financemagnates.com.

Genesis Global secures court approval for $3B payout

Author: Cointelegraph by Amaka Nwaokocha
United States
May 19, 2024 12:00

Genesis Global secures court approval for $3B payout

According to Judge Lane, any available funds for distribution by Genesis are being exhausted by creditor claims, which take priority over DCGs equity stake.

SEC Requests 60-Day Delay in Gemini Trusts Lawsuit Settlement Talks

Author: Mwongera Taitumu
Estonia
Apr 03, 2025 02:35

SEC Requests 60-Day Delay in Gemini Trusts Lawsuit Settlement Talks

The U.S Securities and Exchange Commission (SEC) filed a court request to postpone its Gemini Trust lawsuit for 60-days. The application, submitted on April 1 in the U.S. District Court for the Southern District of New York, aims to stop all deadlines. The requested delay creates time for both parties to determine whether they can […]

Jul 29, 2023 05:50

Bankruptcy Tussle Between Crypto Firms FTX and Genesis Nears Resolution

The long-standing legal feud between FTX Trading and Genesis Global Holdco is taking a turn towards resolution. The two parties have reached an initial agreement, in principle, following bankruptcy protection disputes that have made industry headlines. An official letter to the bankruptcy judge representing their cases has affirmed the intent of the firms to put [...]

The post Bankruptcy Tussle Between Crypto Firms FTX and Genesis Nears Resolution  appeared first on Crypto Breaking News.

Mar 05, 2023 06:55

Bybit suspends USD bank transfers amid service outages


Dubai-based crypto exchange Bybit has temporarily suspended USD deposits via bank transfers due to "service outages from a partner." Users can still withdraw funds through wire transfers until March 10, but are encouraged to do so as soon as possible to avoid potential disruptions. Bybit has exposure to the bankrupt crypto lender Genesis Global Trading and claims all client funds are safe and secure. (Read More)

DCG offloads Grayscale shares to raise capital: Report

Author: Cointelegraph By Luke Huigsloot
United States
Feb 08, 2023 08:20

DCG offloads Grayscale shares to raise capital: Report

The purported sales are the latest measures the embattled firm has taken following moves in recent months to raise capital and preserve liquidity.

Genesis eyes fast resolution to creditor disputes and bankruptcy exit in May

Author: Cointelegraph By Jesse Coghlan
United States
Jan 24, 2023 08:20

Genesis eyes fast resolution to creditor disputes and bankruptcy exit in May

A lawyer for Genesis is optimistic it can resolve creditor disputes before the week is out while the firm could exit bankruptcy proceedings in four months.

Crypto lender Genesis files for Chapter 11 bankruptcy

Author: Cointelegraph By Jesse Coghlan
United States
Jan 20, 2023 08:20

Crypto lender Genesis files for Chapter 11 bankruptcy

Crypto lender Genesis Global has become the latest firm to throw in the towel following the collapse of FTX, filing for Chapter 11 bankruptcy protection in New York.

Gemini and Genesis charged by SEC over unregistered securities

Author: Cointelegraph By Jesse Coghlan
United States
Jan 13, 2023 12:00

Gemini and Genesis charged by SEC over unregistered securities

The charges relate to Gemini's crypto asset lending program, Gemini Earn, according to a press release from the Securities and Exchange Commission.

Jan 06, 2023 07:50

Genesis Bankruptcy Rumors Intensify as the Firm Lays Off 30% of Staff

In less than six months, crypto lending platform Genesis Global has reduced its workforce for the second time.

Continue reading Genesis Bankruptcy Rumors Intensify as the Firm Lays Off 30% of Staff at DailyCoin.com.

Jan 03, 2023 07:10

Gemini Users Filed Class Action Lawsuit Against Genesis and Digital Currency Group

In response to Genesis Global Capital and Digital Currency Group freezing withdrawals and Gemini suspending its Earn redemption program, three Gemini Earn users have requested class action arbitration against them. A class-action lawsuit is frequently viewed as an alternative to class-action arbitration, a process for resolving disputes between parties by a neutral third-party arbitrator. The […]

Crypto lender Genesis has no solution yet for withdrawal halts

Author: Cointelegraph By Brayden Lindrea
United States
Dec 08, 2022 08:20

Crypto lender Genesis has no solution yet for withdrawal halts

Genesis said it will take additional weeks to carve out a recovery path for its lending business.

Genesis Global halts withdrawals citing 'unprecedented market turmoil'

Author: Cointelegraph By Zhiyuan Sun
United States
Nov 16, 2022 04:40

Genesis Global halts withdrawals citing 'unprecedented market turmoil'

The troubled firm is also acting as the liquidity provider of Grayscale Bitcoin Investment Trust.

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