News

Genesis Creditor Repayments Now Conducted With $4 Billion in Crypto Asset Distributed

Key Points:

  • Genesis creditor repayments began with approximately $4 billion in digital assets distributed.
  • Bitcoin and Ether creditors will recover 51.28% and 65.87% of their holdings, respectively, while Solana creditors will receive 29.58%.
Genesis Global and associated entities have finalized the bankruptcy restructuring process and begun distributing approximately $4 billion of digital assets and cash to creditors.

Read more: Gemini Announces $2.18 Billion Asset Return to Earn Users Following Genesis Settlement!

Genesis Creditor Repayments Conducted After 2 Years of Collapse

The Genesis creditor repayment marks a huge milestone for the embattled firm that took the path of bankruptcy earlier this year amidst the broader market takedown of 2022.

This means a recovery rate of 51.28% for Bitcoin creditors and a recovery rate of 65.87% on Ether, both on an in-kind basis. At the same time, Solana creditors will recover 29.58%. Most altcoin creditors will recover about 87.65% of their assets—with Solana as an exception.

A superiority class containing stablecoin and cash creditors will recover their investments 100%, dollar-for-dollar. In addition, there is a $70 million litigation fund for creditors to pursue legal claims against third parties, including Genesis’s parent company, DCG.

Genesis Recent Developments in Crypto Recoveries

The Genesis creditor repayments come after significant turmoil within the crypto sector, which has been accentuated by the collapse of Terra and FTX, thereby putting many investors in deep financial trouble.

Genesis participates in institutional lending and borrowing from firms such as Gemini. The default of Three Arrows Capital spelled major fallout for the firm. This then created a highly publicized spat between Gemini’s Cameron Winklevoss and DCG’s Barry Silbert, leveling accusations of mismanagement and fraud.

Earlier this year, Genesis settled a $21 million fine with the US Securities and Exchange Commission for selling unregistered securities. This comes after the Mt. Gox exchange began its repayment process to creditors, which is also worth billions in payouts.

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

Recent Posts

Gate.io Shatters Records in Total Trading Volume in Q3 2024, with Its User Base Surpassing 17 Million

In the third quarter of 2024, despite a challenging market environment, Gate.io maintained strong growth…

16 mins ago

MEXC Champions the Future of Crypto Content Creation at CCCC

MEXC is proud to partner with the inaugural Crypto Content Creator Campus CCCC event, taking…

16 mins ago

Dtec Announces Global Partnership with DİZAYNVIP to Elevate AI-Driven Mobility Design  

Dtec and DİZAYNVIP partner to merge AI technology with luxury vehicle design, revolutionizing smart mobility…

1 hour ago

Bitcoin Spot ETF Outflows Reach Second Highest in History

Bitcoin Spot ETF Outflows hit $541M on November 4, the second-highest single-day outflow in history.…

5 hours ago

PropiChain’s Token Presale Turns Heads as the First DeFi Platform to Merge NFTs with AI 

The hype around PropiChain’s token presale is due to its innovative integration of NFTs and…

8 hours ago

UK Pension Fund Cartwright Encourages 3% Allocation to Bitcoin Investment

UK pension fund Cartwright advised the country's first defined benefit pension fund to allocate 3%…

10 hours ago

This website uses cookies.