Genesis begins distributing $4 billion in assets to creditors, creates legal fund to sue DCG, others News โธ US โธ Bitcoin โธ Bankruptcy
Genesis begins distributing $4 billion in assets to creditors, creates legal fund to sue DCG, others
The defunct firm created a $70 million fund to pursue legal actions against its parent company, Digital Currency Group, and others.
2 min read
Updated: Aug. 2, 2024 at 7:29 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Genesis has finalized its restructuring process and started distributing roughly $4 billion in digital assets and US dollars to creditors, according to an Aug. 2 statement.
The company revealed that creditors will recover an average of 64% of their crypto claims, depending on the coins.
Bitcoin holders will regain 51.28% of their holdings, Ethereum creditors will receive 65.87%, and Solana creditors will be paid 29.58%. Other altcoins holders will receive 87.65% of their assets, while creditors owed stablecoins or US dollars will receive the full amount owed.
The firm added that its creditors may receive more funds following the initial distribution based on ongoing claims reconciliation, contractual rights, and litigation outcomes.
Meanwhile, Genesis has set up a $70 million litigation fund to pursue legal action against various third parties, including its parent company, Digital Currency Group. This fund comprises $26 million in BTC, $13 million in ETH, and $31 million in fiat.
Mark Renzi, Managing Director at BRG, has been appointed as the plan administrator to oversee the plan and the company’s wind-down process. The company has also appointed a new board of directors.
The announcement concludes a lengthy bankruptcy process that began in January 2023, when Genesis and its subsidiaries filed for Chapter 11 protection in New York due to significant losses from the collapse of the FTX exchange.
At the time, the firm reported owing over $3.5 billion to its top 50 creditors.
Repayments
According to Arkham Intelligence, on-chain data shows the firm has started repaying its creditors, with a wallet linked to the billionaire Mark Cuban receiving $19.9 million in ETH from Genesis.
This followed the blockchain analytical platform’s earlier report that Genesis had moved 16,600 BTC, equivalent to $1.1 billion, and 166,300 ETH, valued at $521.1 million, in multiple transactions on Aug. 2 for other creditor claims.
Lookonchainย pointed out that the repayment process began earlier in the week, with Genesis shifting around $3 billion in crypto โ 32,256 BTC (valued at approximately $2.12 billion) and 256,775 ETH (worth about $838 million) โ in three days.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ethereum
$3,304.78
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Solana
$242.963
Solana is a high-performance blockchain platform that utilizes a unique consensus algorithm called “Proof of History” to achieve fast transaction speeds and low fees.
Genesis
Genesis is an institutional digital asset markets and a full-service digital currency prime brokerageย providing a single point of access for select qualified individuals and global institutional investors.
Digital Currency Group
Digital Currency Group’s mission is to accelerate the development of a better financial system.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Mark Cuban is an American billionaire entrepreneur, television personality, and media proprietor whose net worth is an estimated $4.7 billion, according to Forbes, and ranked No.