- Genesis begins distributing approximately $4 billion in digital assets and cash to creditors.
- Bitcoin creditors will receive 51.28% recoveries in-kind while Ethereum creditors receive.
- The announcement coincided with a market drop, with Genesis-linked wallets moving 16,600 BTC and 166,300 ETH.
Genesis Global, a cryptocurrency lender, and its affiliated companies have completed their bankruptcy restructuring process. As a result, they have started distributing approximately $4 billion in digital assets and cash to their creditors.
According to a statement released on Friday, Bitcoin (BTC) creditors can expect to receive 51.28% recoveries on an in-kind basis, while Ethereum (ETH) creditors will receive 65.87% recoveries.
Altcoin creditors, excluding Solana, will receive an average of 87.65% recoveries, and Solana creditors will receive 29.58% recoveries. US dollar and stablecoin creditors will receive 100% recoveries in the form of US dollars.
The completion of Genesis’ restructuring marks a significant milestone in the company’s journey since filing for bankruptcy in early 2023. The crypto lender’s downfall was one of several high-profile collapses in the industry during the last bear market. This resulted in coins being trapped for users of the Gemini exchange, which had a lending program through Genesis, known as Gemini Earn.
The aftermath of Genesis’ bankruptcy was marked by a series of accusations and lawsuits between Genesis parent Digital Currency Group and Gemini, including a fraud accusation by the New York Attorney General that ultimately resulted in a $2 billion settlement.
Earlier this year, Genesis agreed to pay a $21 million fine to settle charges with the US Securities and Exchange Commission (SEC) related to an unregistered offer and sale of securities.
The Genesis distributions come on the heels of bankrupt crypto exchange Mt. Gox’s completion of its first tranche of repayments to creditors, totaling in the billions. These events mark a significant step towards resolution and recovery for creditors affected by significant crypto lender bankruptcies in the past years.
Notably, the latest announcement from Genesis coincides with a massive drop in the crypto market on Friday, with Bitcoin declining to $60,000. The bearish pressure intensified as wallets linked to Genesis moved 16,600 BTC (worth $1.1 billion) and 166,300 ETH (worth $521.1 million) yesterday evening.
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