Genesis Global and its subsidiaries have begun making payments to creditors totaling $4 billion following the completion of the restructuring process.
Cryptocurrency lender Genesis Global has begun repaying more than 100,000 creditors following its declaration of bankruptcy in January 2023, according to a statement on August 2.
Recovery rates vary by asset type, with Genesis creditors set to receive an average of 64% of pre-bankruptcy value. The lender announced a 51.28% recovery for Bitcoin (BTC) creditors, 65.87% for Ethereum (ETH) creditors, and 29.58% for Solana (SOL) assets.
Stablecoin and USD creditors performed the best, getting 100% of their fiat-pegged tokens and cash back. Refunds were split between in-kind (the exact crypto asset invested) and cash. This comes after reports that Genesis moved $3 billion worth of cryptocurrency.
“Creditors will be entitled to additional compensation following the initial distribution, depending on the outcome of the ongoing claims settlement process, contractual rights against third parties and litigation,” Genesis said in a press release.
Genesis bankruptcy
Genesis first collapsed in 2022 due to contagion in the crypto industry. The consequences of Terra’s collapse reverberated across digital asset markets, affecting various providers.
The Terra incident brought down hedge fund Three Arrows Capital and cryptocurrency exchange FTX, and eventually forced Genesis to halt filming and declare bankruptcy.
The company received financial assistance from its parent company, Digital Currency Group, but DCG’s ticker has not been able to resolve troubling business and legal disputes with cryptocurrency exchange Gemini.
New York Attorney General Letitia James also filed a lawsuit against DCG and the crypto lender for misleading investors and falsifying financial statements. The matter was settled between the crypto lender and NY authorities for $2 billion. Genesis said the restructuring plan includes a $70 million litigation fund “to pursue litigation against various third parties, including Digital Currency Group,” while the protected court battles continue.