Bullish Bitcoin traders better positioned for Fridays $5.5B options expiry

Bullish Bitcoin options traders expect a hefty profit from Fridays expiry now that Germany and Mt. Gox wallets have been emptied

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Genesis-labelled address moves $720M BTC to Coinbase, pointing to start of asset liquidations

Genesis Trading transferred over 12,600 Bitcoin to Coinbase over the past 30 days, two months after reaching a settlement with the state of New York.

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Legal fees skyrocket in high-profile crypto bankruptcies

High-profile bankruptcy cases have become a lucrative goldmine for two major law firms involved in the legal proceedings: Sullivan and Cromwell and Kirkland and Ellis.

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Gemini Distributes $2.18 Billion in Digital Assets to Earn Program Users

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Gemini Returns $2.2B to Crypto Lending Program Users Following 18-Month Suspension: Report

Crypto exchange Gemini, owned by the Winklevoss twins,has announced the return of $2.2 billion to users of its Earn program afterhalting withdrawals 18 months ago, CNBC reported. This move followed asubstantial settlement between the New York Attorney General and Genesis,Gemini's lending partner.

Refunding Crypto Lending Users

With the more than $2 billion settlement, investorsare expected to fully reclaim their losses, marking a significant victory forthose affected. The resolution between Gemini and Genesis was brokeredwith the oversight of the New York Attorney General.

Gemini's Earnprogram was launched in 2021 to offer users the opportunity to earn attractiveyields on their cryptocurrency holdings. By participating in the program, usersentrusted their assets to Gemini, which then facilitated lending toinstitutional borrowers through Genesis Global Capital.

However, the program faced challenges in November 2022when Genesis halted new loan originations and redemptions, prompting Gemini tosuspend withdrawals. However, Gemini committed to returning 100% of digital assets to Earn program users. The company's approach, coupled with regulatory intervention,has paved the way for a substantial recovery for affected investors.

Gemini reportedly emailed users that the initial Earndistributions, approximately 97% of the funds Genesis owed users, were available inGemini accounts. The crypto exchange said that the distribution followed asettlement with Genesis and other creditors, which will result in Earn usersreceiving full reimbursement. At $2.18 billion, the distribution represents a 232% recovery for users.

NYAG Lawsuit

Last year, New York Attorney General Letitia James sued Gemini, Genesis, and Digital Currency Group for allegedlyorchestrating a fraudulent scheme that misled over 230,000 investors andresulted in losses exceeding $1 billion.

The lawsuit claimed that Gemini misled investors aboutthe safety of its partnership with Genesis while Genesis and DCG concealedsignificant losses. Investors were told that their money would be safe and growthrough the Gemini Earn program, which promised to generate profits by lendingassets to third parties. However, an investigation by the Attorney General revealeda different reality.

The losses resulted from defaults by major borrowerssuch as Three Arrows Capital and Babel Finance, resulting in a combined loss exceeding $1.2 billion. Despitethese significant financial setbacks, Genesis and DCG reportedly misledinvestors by falsely claiming that the losses had been absorbed through apromissory note.

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Gemini Earn returns over $2 billion in crypto, triggering concerns of sell pressure

Crypto exchange Gemini said users of its now-defunct Earn product received $2.18 billion of their digital assets, according to a May 29 statement. These distributions amount to 97% of the total digital assets owed to Earn users, marking a significant recovery since the collapse of crypto lender Genesis, which halted withdrawals in November 2022. In-kind […]

The post Gemini Earn returns over $2 billion in crypto, triggering concerns of sell pressure appeared first on CryptoSlate.

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New York Attorney General Reaches $2 Billion Settlement with Genesis Global

Letitia James unveils a victims' fund for defrauded investors, marking New York State's largest settlement with a cryptocurrency company.

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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.

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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

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.

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New York AG Reaches $2 Billion Settlement with Defunct Genesis Global

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New York AG reaches $2B settlement with Genesis for defrauded victims

The attorney generals office filed a lawsuit against Genesis in October 2023 for allegedly defrauding investors through the Gemini Earn program.

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Bankrupt Crypto Lender Genesis to Repay $3 Billion to Creditors

Genesis gets court nod to distribute $3B to creditors, covering 77% of the claims. Notably, DCG is excluded from the payout list.

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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.

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Genesis Global Granted Court Approval to Return $3 Billion to Customers

Crypto lende­r Genesis Global has taken a significant ste­p towards resolving its bankruptcy case. On Friday, a US Bankruptcy Judge approve­d the company’s Chapter 11 liquidation plan, paving the way for a partial re­turn of funds to its customers. This marks a positive deve­lopment for Genesis’ cre­ditors, who will receive an e­stimated $3 billion in […]

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Explore The Genesis Jungle: Morph Zoos First Adventure in Consumer-Centric Blockchain

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Genesis Trading Initiates Asset Deposit To Gemini Following Bankruptcy Declaration

In a significant development in the cryptocurrency landscape, the bankrupt crypto lender Genesis Trading has recently initiated a deposit of $36.45M worth of 34 crypto assets to Gemini, one of the prominent cryptocurrency exchanges. Among the top five assets deposited are 16.4M GRT ($4.83M), 123K INJ ($2.95M), 396M AMP ($2.93M), […]

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Genesis Acquires Over 32,000 BTC After Offloading GBTC Shares

Embattled crypto lender Genesis Global Capital has continued to ramp up efforts to pay up creditors after filing for bankruptcy protection in January 2023. As part of these efforts, Genesis has now reportedly sold off the entirety of its Grayscale GBTC holdings to acquire a substantial amount of Bitcoin in order to implement its repayment strategy.  Related Reading: Bitcoin Dips, But Dont Panic: ETFs See Three Days Of Bullish Inflow Genesis Converts GBTC Shares To Bitcoin In Preparation For Debt Settlement According to a Friday report by Bloomberg Law, Genesis finalized the sale of its 36 million GBTC shares, as revealed by the companys lawyers in a court filing on April 2. Genesis had initially received legal approval to liquidate its GBTC holdings on February 2 with each unit share valued at $38.50. However, court documents showed that the current price of GBTC as at the time of sale on April 2 was $58.50 resulting in a total sale price of $2.1 billion.  Bloombergs report disclosed that the bankrupt crypto lender then used these proceeds to purchase 32,041 Bitcoin at a market price of $65,685, which will be distributed to creditors as part of its repayment plan, especially those who were previously enrolled in the Gemini Earn program.  These recent transactions align with Genesiss bankruptcy plan which allows the conversion of GBTC shares to either Bitcoin or direct cash for the settlement of its existing debt. Currently, the crypto lender owes $3.5 billion to creditors and will commence repayment following court approval.  However, Genesis faces fierce opposition from its parent company, Digital Currency Group (DCG), over its proposed repayment plan. In a petition filed in February, DCG argues that its bankrupt subsidiary looks to settle creditors’ claims at amounts higher than their respective entitlement.  DCG believes such a repayment strategy violates the Bankruptcy Code and is unfair since it will only benefit senior creditors who will largely gain from an appreciation in Genesiss crypto assets value while equity holders and company stakeholders are left in unfavorable positions. Founded in 2013, Genesis is one of the prominent crypto firms to file for bankruptcy. Its insolvency is largely linked to the sudden collapse of the defunct crypto exchange FTX. Related Reading: Bitcoin Whales Maintain Positive Accumulation Behavior Ahead Of 2024 Halving: Report Bitcoin Price Overview In other news, Bitcoin gained by 2.55% in the last day to reach a price of $69,339. Such price gain would be encouraging to investors especially following the token’s overall negative performance in the past week. On higher timeframes, BTC largely remains largely bullish as anticipation continues to build ahead of the halving event on April 19.  The fourth halving in Bitcoin’s history is expected to reduce the mining reward from 6.25 BTC to 3.125 BTC. BTC trading at $69,314 on the daily chart | Source: BTCUSDT chart on Tradingview.com Featured Image from Nairametrics, chart from Tradingview.com

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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 […]

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Genesis Digital Assets Leverages Renewables to Increase Bitcoin Mining Capacity at New Texas Facility

The global bitcoin mining company will harness wind and solar energy from West Texas to expand its operations.

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DCGs Barry Silbert Pitched Genesis-Gemini Merger in a Drastic Bid to Save the Lender in 2022

Source: CoinDesk

The post DCG’s Barry Silbert Pitched Genesis-Gemini Merger in a Drastic Bid to Save the Lender in 2022 appeared first on Crypto Breaking News.

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