Genesis Global, a subsidiary of Digital Currency Group (DCG) that went bankrupt during the crypto crash last year, is finally starting to pay back its creditors.
Big Payout for Creditors
The company announced it’s distributing about $4 billion in crypto and cash to creditors, following its Chapter 11 bankruptcy restructuring.
- Average Recovery: Creditors are expected to get back around 64% of their original investments.
- Bitcoin: Bitcoin holders will get 51.28% of their BTC back.
- Ethereum: Ethereum holders will receive 65.87% of their ETH.
- Altcoins: Most altcoin holders will get 87.65% of their holdings back, except for Solana holders who will receive 30%.
- US Dollar & Stablecoins: Holders of US dollars and stablecoins will get 100% of their funds back in USD.
More Money Possible?
There’s a chance creditors could get even more money later on. This depends on:
- Claims Reconciliation: How much is owed to each creditor.
- Third-Party Rights: Whether Genesis can recover funds from other companies.
- Litigation: Any legal battles that might bring in more money.
Lawsuit Fund
Creditors have set up a $70 million fund to sue third parties, including DCG, Genesis’ parent company.
DCG’s Objection
DCG originally opposed the bankruptcy plan, saying it would unfairly favor certain creditors. However, the court ruled that Genesis doesn’t have enough assets to give DCG anything.
Genesis’ Troubles
Genesis froze customer funds back in November 2022 after facing liquidity issues caused by the collapse of the crypto hedge fund Three Arrows Capital.
