Our Litigators of the week are Sean O’Neal, Tom Kessler and Jane VanLare of Cleary Gottlieb Steen & Hamilton. They helped crypto lender Genesis Global simultaneously navigate bankruptcy proceedings and Martin Act claims from the New York State Attorney General. 

After an evidentiary hearing earlier this year on a proposed settlement with the AG and Genesis’ plan of reorganization, U.S. Bankruptcy Judge Sean Lane in White Plains, New York signed off on both last week. Over the staunch objections of Genesis’ parent company and equity holder Digital Currency Group Inc., the judge agreed to allow Genesis to distribute cryptocurrency assets to its creditors in excess of the value on the date of its Jan. 19, 2023 Chapter 11 filing. With the recent cryptocurrency rebound, that move is set to allow for an estimated return of 100% on claims to creditors owed dollars and an average of 77% recoveries to cryptocurrency creditors on an in-kind basis.