Gemini

Terra

Read

James

Genesis Global and affiliated entities have begun disbursing $4 billion in creditor payouts following the completion of their restructuring process.
According to an Aug. 2 statement, crypto lender Genesis Global <a href="https://www.businesswire.com/news/home/20240802215732/en/Genesis-Completes-Restructuring-and-Commences-Distributions-to-Creditors" target="_blank" rel="noopener noreferrer nofollow">started</a> repayments to over 100,000 creditors after declaring bankruptcy in January 2023.
The recovery rates vary by asset type, with Genesis creditors will receiving an average of 64% of pre-bankruptcy value. The lender disclosed 51.28% recovery for Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="noopener noreferrer nofollow">BTC</a>) creditors, 65.87% for Ethereum (<a href="https://crypto.news/price/ethereum/" target="_blank" rel="noopener noreferrer nofollow">ETH</a>) creditors, and 29.58% for Solana (<a href="https://crypto.news/price/solana/" target="_blank" rel="noopener noreferrer nofollow">SOL</a>) assets.&nbsp;
Stablecoin and U.S. dollar creditors fare the best, recovering 100% of their fiat-pegged tokens and cash. The repayments are divided between in-kind (the exact crypto asset deposited) and cash. This <a href="https://crypto.news/genesis-transfers-3b-worth-of-crypto-amid-bankruptcy/" target="_blank" rel="noopener noreferrer nofollow">follows</a> reports of Genesis moving $3 billion in cryptocurrencies.
The Genesis press release stated, “Creditors will be entitled to additional recoveries following the initial distribution, depending on the results of ongoing claims reconciliation, contractual rights against third parties, and litigation.”
You might also like: <a href="https://crypto.news/genesis-transfers-3b-worth-of-crypto-amid-bankruptcy/" rel="noopener noreferrer nofollow"> Genesis transfers $3b worth of crypto amid bankruptcy </a>
<h2 class="wp-block-heading" id="genesis-bankruptcy">Genesis bankruptcy</h2>
Genesis initially collapsed in 2022 due to contagion in the crypto industry. The fallout from Terra’s implosion reverberated through digital asset markets, impacting various providers.
The Terra saga crippled hedge fund Three Arrows Capital and crypto exchange FTX, ultimately forcing Genesis to halt withdrawals and declare bankruptcy.
The firm received financial aid from parent company Digital Currency Group, but DCG’s promissory note could not abate the beleaguered business and legal tussles with crypto exchange Gemini heaped on turbulent times.&nbsp;
New York Attorney General Letitia James also <a href="https://crypto.news/new-york-ag-lawsuit-dcg-3-billion-genesis-settlement/" target="_blank" rel="noopener noreferrer nofollow">sued</a> DCG and the crypto lender for misleading investors and falsifying financial statements. The matter <a href="https://crypto.news/new-york-attorney-general-concludes-2b-genesis-settlement/" target="_blank" rel="noopener noreferrer nofollow">settled</a> for $2 billion between the crypto lender and NY authorities. Genesis said its restructuring plan includes a $70 million litigation fund “to pursue causes of action against various third parties, including Digital Currency Group” as protected court battles continued.
Read more: <a href="https://crypto.news/ex-sinor-exect-bitcoin-reserve-bill-could-be-a-disaster-in-the-making/" rel="noopener noreferrer nofollow"> Ex-senior White House exec: Bitcoin reserve bill could be a ‘disaster in the making’ </a>

Genesis concludes bankruptcy with $4b creditor payout

Table of Contents

crypto.news

Other articles published on Aug 2, 2024

Chainlink Join Hands With Wenia to Boost Transparency of Colombian Peso-Backed Stablecoin

Bitcoin Experiences Significant Whale Activity Despite Downward Trend

BREAKING: Tucker Carlson Claims CIA Created Bitcoin, Not Satoshi Nakamoto

Bitcoin Miner Marathon Digital Reports $199.7 Million Q2 Loss

Bitcoin Eyes $55K Amid Global Market Sell-off

Solana traders, SOL’s latest breakout means THIS for you!

Join our free newsletter for daily crypto updates!