Bankrupt cryptocurrency loan company Genesis Global Capital has won court approval for its plan to distribute billions of dollars in digital assets and cash to creditors, defeating a legal challenge from its parent company, Digital Currency Group.

Bankrupt cryptocurrency lending firm Genesis Global Capital is seeking court approval for its proposal to distribute billions of dollars in assets to creditors. Genesis and DCG are scheduled to clash in court on Monday in White Plains, New York over the plan to repay creditors of this bankrupt subsidiary, whose digital assets and cash have been frozen on the platform since several major cryptocurrency companies collapsed in November 2022. Under Chapter 11 bankruptcy law, Genesis estimates that if its plan is approved by the court, creditors who are provided with digital assets can recover up to 77% of their debt, but if DCG wins, the amount recovered will be reduced. Creditors include high net worth clients who lent cryptocurrency to Genesis and customers of Gemini Earn.

According to Bloomberg, bankrupt crypto lending platform Genesis has reached a settlement agreement with New York State Attorney General Letitia James, who previously accused Genesis of deceiving customers through the now-terminated Gemini Earn program. It is reported that the settlement will result in assets that may have been transferred to New York state agencies being returned to former Earn customers and other Genesis creditors. The transaction must be approved by a bankruptcy judge, and Genesis is operating independently in bankruptcy and will seek approval from Judge Sean Lane for its New York settlement and liquidation plan on February 14.

Gemini Trust stated on social media that on January 25th, Genesis submitted a voting report that included the claim amount and quantity allowed for each category to accept or reject the plan. The Gemini Lenders, also known as Earn users in the voting report, voted to accept the plan. Gemini represents all Earn users and continues to work closely with Genesis and other parties involved in the case to improve and clarify the plan before the upcoming confirmation hearing, which is still scheduled for February 14, 2024.

Genesis Global Trading, a subsidiary of Digital Currency Group, has agreed to forfeit its BitLicense, pay an $8 million fine, and cease operations in New York as part of a settlement with the state's Department of Financial Services. The regulator found significant shortcomings in the company's anti-money laundering and cybersecurity protocols. The settlement highlights the need for robust compliance mechanisms in the rapidly evolving and inherently risky domain of digital currencies, and comes at a pivotal moment for crypto regulation in New York. Genesis is one of the key portfolio companies that helped make DCG a key player in the American crypto industry.

New York Financial Services Department plans to announce a settlement with Genesis Global Trading, a subsidiary of the major cryptocurrency enterprise group DCG, later tonight. After an investigation found significant deficiencies in Genesis' anti-money laundering and cybersecurity programs, the trading company agreed to surrender its BitLicense, cease operations in New York, and pay an $8 million fine.

Genesis and Digital Currency Group (DCG) have come to a settlement agreement over unpaid debts, but the deal still requires approval from creditors. DCG will pay its subsidiary, Genesis Global Capital, $295 million in US dollars and bitcoin by April to partially repay the $620 million owed. However, creditors must still agree to the deal. Gemini, a major Genesis creditor, has opposed the restructuring plans and is currently in a legal dispute with DCG over allegations of fraud. The Securities and Exchange Commission (SEC) has also sued both Gemini and Genesis for selling unregistered securities.

Digital Money Group has reached a new repayment agreement with its bankrupt subsidiary, Genesis Global Holdco LLC, as part of a settlement to end the lawsuit claiming around $620 million from DCG. Genesis lawyer Sean O'Neal stated at a hearing on Tuesday that the deal will provide around $200 million in funding for the bankrupt cryptocurrency lending institution in the coming weeks and requires DCG to complete unpaid payments by April 2024. If DCG defaults, Genesis can attempt to collect any unpaid amounts according to court documents. The proposed agreement aims to settle the lawsuit filed by Genesis in September to recover unpaid loans from its parent company. Court documents show that DCG has been making payments to Genesis since the lawsuit was filed, and as of November 28, DCG still owes its subsidiary $324.5 million.

Crypto lender Genesis has filed a lawsuit against cryptocurrency exchange Gemini to recover over $689 million in preferential transfers made through the Gemini Earn Program during the 90-day period prior to Genesis filing for Chapter 11 bankruptcy. Genesis claims that these withdrawals benefited Gemini at the expense of other creditors and is demanding the return of the funds. This comes as Gemini has filed a lawsuit against Genesis' parent company, Digital Currency Group, for allegedly masterminding a fraud scheme against creditors.

According to a court filing submitted on Tuesday evening, cryptocurrency lending firm Genesis Global Capital has sued its former business partner, cryptocurrency exchange Gemini Trust, to recover over $689.3 million. The accusation alleges that Gemini prioritized the transfer of Genesis' "total amount of not less than approximately $689,302,000" at the expense of other creditors and requests the court to "correct this unfairness."