Bankrupt crypto lender Genesis Global Capital has completed its restructuring alongside sister companies Genesis Global Holdco and Genesis Asia Pacific and has begun distributing roughly $4 billion to creditors, the company announced. Announced on Friday.
In the initial distribution, creditors will receive a portion of the recovered assets in kind. Bitcoin creditors will receive 51.28% of the recovered amount, Ether creditors will receive 65.87% of the recovered amount, Solana creditors will receive 29.58% of the recovered amount, other altcoin creditors will receive 87.65% of the recovered amount in kind, and USD and stablecoin creditors will receive 100% of the recovered amount.
After the initial distribution, creditors will be entitled to additional recoveries subject to ongoing claims adjustments, contractual rights against third parties, and the outcome of litigation.
Book of Genesis It filed for bankruptcy early last year.The crypto lender was embroiled in a loan to FTX sister company Alameda Research, which filed for bankruptcy in November 2022. In July 2022, Genesis also took a $2.4 billion hit when crypto hedge fund Three Arrows Capital defaulted on a loan from the company following the collapse of the Terra Ecosystem.
Shortly after FTX filed for bankruptcy, Genesis and cryptocurrency exchange Gemini halted withdrawals from their jointly run Gemini Earn program, which allows Gemini clients to lend assets to Genesis and receive interest.
The program has since come under scrutiny and litigation from regulators, who have said they believe Genesis and Gemini were using the program to Sold unregistered securitiesGenesis settled with the Securities and Exchange Commission for $21 million. Mid-FebruaryNew York Attorney General Letitia James sued Genesis’ parent company, Digital Currency Group, and Gemini for fraud, and the companies settled the charges. $2 billion in May.
As part of Genesis’ bankruptcy plan, creditors have established a $70 million litigation fund to pursue legal action against various third parties, including parent company DCG. The litigation fund is made up of $26 million in BTC, $13 million in ETH, and $31 million in USD.
A Genesis spokesman did not respond to a request for further comment.
