- The cryptocurrency lender Genesis Global filed for bankruptcy protection in January 2023, and on Friday, the company finished its restructuring.
- Additionally, the company is starting to provide its remaining creditors access to assets valued at $4 billion.
- Genesis creditors will normally receive 64% of their in-kind cryptocurrency repayments, though this could vary according on the coin.
After declaring bankruptcy in January 2023, Genesis Global and its affiliated companies said on Friday that the reorganization process was finished. According to a news release, the company has also started paying out almost $4 billion in digital assets and US currency to creditors.
Genesis creditors will normally receive 64% of their in-kind cryptocurrency repayments, though this could vary according on the coin. 51.28% of the debt owed by Bitcoin BTC -10.83%, ETH -20.11% creditors, 65.87% creditors, and Solana SOL -11.32% creditors will be reimbursed. According to the firm, anyone who are due dollars or stablecoins will get 100% of their unclaimed money back.
Depending on the outcome of continuing claims reconciliation, contractual rights against third parties, and litigation, creditors may be entitled to additional recovery after the initial distribution, the firm stated.
Gemini, which was entrusted with overseeing the assets under Gemini’s “Earn” program, which shut down as a result of Genesis’ insolvency, declared in May that its clients had received full reimbursements from Genesis.
One of the numerous businesses affected by the market contagion incident that ensued after the 2022 market slump was Genesis. After Terra collapsed, more overleveraged or poorly managed companies started to fail, culminating in the most catastrophic failure of the FTX cryptocurrency exchange.
After suffering initial losses due to the failure of the Three Arrows Capital hedge fund, Genesis was able to recover thanks to a $1.1 billion promissory note and loan from its parent business, Digital Currency Group. However, additional losses after the failure of Alameda Research, the firm run by convicted fraudster Sam Bankman-Fried, compelled Genesis to stop taking withdrawals and file for bankruptcy.
Attorney General Letitia James of New York is suing DCG and Genesis in a civil action, claiming the companies misled investors about Genesis’ solvency and concealed a hole in its balance sheet.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
