Genesis Bankruptcy Approved, Gemini Earn Users Immediately Receive Their Crypto Back

Bittime -The US bankruptcy court has approved the Chapter 11 plan of Genesis, the bankrupt crypto lending company. This decision likely means significant financial losses for Genesis' parent company, Digital Currency Group (DCG).

Genesis Users will Receive Crypto Back 

Gemini, Genesis' primary creditor and operator of the defunct Gemini Earn program, announced good news for its users. They will start receiving back the majority (97%) of the crypto assets owed to them by the end of this month. 

These returns will be “in-kind,” meaning users will receive the same type of crypto they deposited, not the dollar value as of a specific date.

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Objection Rejection: DCG Wants Dollar Valuation

Genesis, a crypto lending company, went bankrupt in early 2023 due to the failure of Terra/Luna and Three Arrows Capital. They filed for Chapter 11 bankruptcy in January 2023 and put forward a plan to pay creditors.

DCG, owner of Genesis, objected to the plan. They argue that creditors should be paid based on the dollar value of their claims at the time of the bankruptcy filing (January 2023). This would ignore subsequent crypto price increases, potentially benefiting DCG at the expense of creditors.

Also Read How to Buy Crypto:

Judge Accepts Creditors, DCG May Appeal 

Judge Sean Lane rejected DCG's objections. He highlighted the lack of sufficient funds to pay DCG once creditor claims are resolved. Although DCG could potentially appeal the decision, legal experts question its justification given its significant financial shortfall.

Gemini Earn Regains User Trust 

The court decision and Gemini's "in-kind" payment approach stands in stark contrast to FTX's bankruptcy case. FTX users are currently scheduled to receive the dollar value of their claims at the time FTX files for bankruptcy, not the actual crypto they deposited. This highlights a more user-friendly approach by Gemini in navigating the bankruptcy process.

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How to Buy Crypto on Bittime

You can buy and sell crypto assets in an easy and safe way via  Bittime .  Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.

Monitor price chart movements  of Bitcoin (BTC) ,  Ethereum (ETH) ,  Solana (SOL)  and other cryptos to find out today's crypto market trends in real-time on Bittime.

Also read:

Gemini Trust and DCG Suspected of Being Involved in a Scam, Bad News for the Crypto Industry

LayerZero Successfully Cleans Sybil on Its Network, Gets More than 800 Thousand Fake Users!

Venezuelan Government Bans Crypto Mining to Stabilize Power Grid

DISCLAIMER:  This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.