Crypto prices have risen since parts of crypto lender Genesis filed for chapter 11 bankruptcy last month, lifting the value of customers’ crypto assets stuck in Genesis accounts. That’s not necessarily good news for Genesis’ creditors, however.
Creditors are worried that any repayments they get from the bankruptcy will be made in dollars, not the original cryptocurrencies, with the conversion value calculated as of the bankruptcy filing date of Jan. 19. That would mean they’d miss out on the rise in prices since then. In discussions with the company, they are demanding repayment in cryptocurrencies, not dollars, according to one creditor.