Crypto lender Genesis Global Capital has submitted an amended Chapter 11 bankruptcy plan in order to address the outstanding claims and interests of its creditors. The revised plan comes after extensive negotiations between Genesis, the Official Committee of Unsecured Creditors, crypto exchange Gemini, and the Ad Hoc Group of Genesis Lenders. While significant progress has been made on key issues, discussions are ongoing and all parties are reserving their rights.
The amended plan organizes creditor claims into 10 classes, with 4 classes specifically for crypto-denominated unsecured claims divided by currency. Fiat, Bitcoin, Ethereum, and alternative crypto-denominated claims would be impaired, allowing them to vote on the proposed plan. Subordinated claims, government penalty claims, and interests would be rejected without voting rights. This differentiated treatment recognizes the different interests of Genesis creditors. Under the plan, newly established “Wind-Down Debtors” would oversee the dissolution of Genesis entities, with assets being liquidated and distributed to creditors. Segregated accounts would be set up for plan distributions, and intercompany claims between Genesis entities would be settled to ensure fair recoveries for creditors. The proposed plan also includes corporate governance changes and preserves causes of action for potential pursuit by the Wind-Down Debtors. The resolution of the Genesis bankruptcy has broader implications for the cryptocurrency industry and could help restore confidence if an orderly wind-down and reasonable creditor recoveries are achieved.
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