Genesis, a company that ceased operations, has officially completed its restructuring process and has started distributing approximately $4 billion in digital assets and US dollars to its creditors. This distribution means that creditors will be able to recover an average of 64% of their cryptocurrency claims, depending on the specific coins they hold. For example, Bitcoin holders will receive 51.28% of their holdings, Ethereum creditors will get 65.87%, and Solana creditors will be paid 29.58%. Other altcoin holders will receive 87.65% of their assets, while those owed stablecoins or US dollars will receive the full amount owed.
In addition to the distribution of assets, Genesis has also established a $70 million litigation fund. This fund is intended to support legal actions against various third parties, including Digital Currency Group, the company’s parent organization. The fund consists of $26 million in BTC, $13 million in ETH, and $31 million in fiat currency. Mark Renzi, the Managing Director at BRG, has been appointed as the plan administrator to oversee the legal proceedings and the company’s wind-down process. Moreover, a new board of directors has been appointed to manage the company moving forward.
The bankruptcy process that Genesis went through started back in January 2023 when the company and its subsidiaries filed for Chapter 11 protection in New York due to significant losses resulting from the collapse of the FTX exchange. At that time, the company reported owing over $3.5 billion to its top 50 creditors.
Recent data from Arkham Intelligence indicates that Genesis has begun repaying its creditors. A wallet associated with billionaire Mark Cuban received $19.9 million in ETH from Genesis. The company also moved 16,600 BTC (equivalent to $1.1 billion) and 166,300 ETH (valued at $521.1 million) in various transactions on August 2nd to fulfill other creditor claims. Lookonchain noted that the repayment process began earlier in the week, with Genesis transferring around $3 billion in crypto assets, including 32,256 BTC (approximately $2.12 billion) and 256,775 ETH (about $838 million) over three days.
The completion of the restructuring process and the distribution of assets mark significant milestones for Genesis as it navigates through its bankruptcy proceedings. With the establishment of the litigation fund and the appointment of new leadership, the company is taking steps to address its financial obligations and legal challenges effectively. The ongoing repayments to creditors demonstrate Genesis’ commitment to fulfilling its responsibilities and resolving outstanding claims. As the situation continues to unfold, stakeholders will be closely monitoring the company’s progress and the outcomes of the legal actions being pursued.
