Crypto Lender Genesis Completes Restructuring, Begins Payouts

(Bloomberg) — Cryptocurrency lender Genesis Global and related companies have completed bankruptcy restructuring and have begun distributing about $4 billion worth of digital assets and cash to creditors.

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Bitcoin creditors will receive a 51.28% recovery rate assessed on an in-kind basis, and Ether creditors will receive a 65.87% recovery rate, the organizations said in a statement Friday. Solana creditors will receive a 29.58% recovery rate assessed on an in-kind basis.

Genesis filed for bankruptcy in early 2023, becoming one of a number of crypto lenders to go bankrupt during the recent bear market. Its collapse trapped coins for users of the Gemini exchange, a lending program through Genesis. There have also been a series of accusations and lawsuits between Genesis’ parent company, Digital Currency Group, and Gemini. The New York Attorney General accused DCG and Gemini of fraud and later settled for $2 billion.

Genesis agreed to pay a $21 million fine earlier this year to resolve charges that it made an offer and sale of securities that was not registered with the U.S. Securities and Exchange Commission.

The Genesis distributions come just days after bankrupt cryptocurrency exchange Mt. Gox completed its first installment payment to its creditors, amounting to billions of dollars.

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