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Crypto lender Genesis to return $3 billion to customers in bankruptcy wind-down

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Crypto lender Genesis to return  billion to customers in bankruptcy wind-down

Crypto lender Genesis Global received a significant victory in bankruptcy court on Friday, securing approval for its liquidation plan that will return approximately $3 billion in cash and cryptocurrency to its customers. The ruling, however, delivers a blow to Genesis’s owner, Digital Currency Group (DCG), which will receive no recovery from the bankruptcy.

U.S. Bankruptcy Judge Sean Lane overruled DCG’s objection to the plan, which centred on the valuation of crypto assets. DCG argued that customer claims should be capped at the value of cryptocurrencies in January 2023, when Genesis filed for bankruptcy. Crypto prices have surged since then, with Bitcoin, for example, rising from $21,084 in January 2023 to its current price of around $67,000.

Judge Lane rejected DCG’s argument, stating that even with the lower valuation, Genesis would have to prioritise paying other creditors, including federal and state financial regulators with claims totalling $32 billion, before distributing funds to its equity owner.

“There are nowhere near enough assets to provide any recovery to DCG in these cases,” Judge Lane wrote in his ruling.

Genesis aims to return funds to customers in cryptocurrency wherever possible, although it lacks sufficient crypto assets to fully repay all outstanding claims.

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Sean O’Neal, an attorney representing Genesis, refuted DCG’s assertion that customers could be paid in full based on the lower January 2023 valuations. “We don’t buy into the idea that claims are capped at the petition date value,” O’Neal stated.

Genesis initially estimated in February that it could repay up to 77% of the value of customer claims, subject to future fluctuations in cryptocurrency prices.

This court approval marks a significant step forward in the resolution of Genesis’s bankruptcy, providing much-needed relief to its customers while leaving its owner, DCG, without any financial recovery.

Crypto

XRP Enters a New Yield Era as Modular Lending Goes Live on Flare

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XRP Enters a New Yield Era as Modular Lending Goes Live on Flare
XRP holders are gaining new ways to unlock yield and credit as Flare introduces permissionless modular lending, expanding XRPFi with institution-grade DeFi infrastructure that keeps XRP exposure intact while enabling composable onchain strategies.
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Senate committee discusses cryptocurrency options for state pension funds – Inside INdiana Business

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Senate committee discusses cryptocurrency options for state pension funds – Inside INdiana Business
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Ripple’s Schwartz Weighs XRP Hitting $50–$100 Odds Using Price Signals

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Ripple’s Schwartz Weighs XRP Hitting –0 Odds Using Price Signals
Ripple’s David Schwartz weighed in on whether XRP could reach $50 or $100, explaining why he avoids absolute price predictions and how current market pricing reflects investor confidence, probability and expectations about future outcomes.
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