As a seasoned crypto investor with a decade of experience navigating the volatile digital asset landscape, I must admit that the news about Genesis Global disbursing $4 billion in creditor payouts after their restructuring process has piqued my interest. Although it’s not the full recovery for many creditors, seeing any return is better than nothing in this space.
After finishing their restructuring process, Genesis Global and related organizations are now distributing a total of $4 billion to creditors as part of their debt settlement.
Starting on August 2nd, Genesis Global, a cryptocurrency lending company, began making repayments to more than 100,000 of its creditors, following their declaration of 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 (BTC) creditors, 65.87% for Ethereum (ETH) creditors, and 29.58% for Solana (SOL) assets.
either the exact crypto asset they initially deposited or cash. This is consistent with recent news about Genesis transferring approximately $3 billion worth of cryptocurrencies.
As an analyst, I can express this in a more conversational manner as follows: “Based on the Genesis press release, it’s indicated that creditors may be eligible for extra recoveries after the initial distribution. This could happen if the ongoing claims reconciliation, any contractual rights against third parties, or litigation outcomes are favorable.”
Genesis bankruptcy
In 2022, Genesis first experienced a crash primarily because of the spread of issues within the cryptocurrency sector. The failure of Terra had far-reaching effects on digital marketplaces, affecting numerous service providers.
The storyline of Terra brought about the downfall of hedge fund Three Arrows Capital and cryptocurrency exchange FTX, leading ultimately to Genesis halting withdrawal requests and filing for bankruptcy.
The company obtained monetary support from its parent company, Digital Currency Group (DCG). However, despite this aid, DCG’s loan agreement did not resolve the ongoing financial and legal disputes with crypto exchange Gemini, which further complicated an already challenging period for the business.
As a concerned cryptocurrency investor, I’ve learned about the lawsuit filed by New York Attorney General Letitia James against Digital Currency Group (DCG) and a crypto lender. The charges include deceiving investors and manipulating financial reports. The settlement between the crypto lender and New York authorities amounts to $2 billion. In response, Genesis, one of the parties involved, has outlined a restructuring plan that includes setting aside a $70 million fund for litigation purposes. This fund is intended to pursue legal actions against Digital Currency Group and other third parties in ongoing court battles.
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2024-08-03 01:18