Genesis begins distributing $4 billion in assets to creditors, creates legal fund to sue DCG, others

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.

Lookonchain pointed
out
that
the
repayment
process
began
earlier
in
the
week,
with
Genesis
shifting
around
$3
billion
in
crypto
—
32,256
BTC
(valued
at
approximately
$2.12
billion)
and
256,775
ETH
(worth
about
$838
million)
—
in
three
days.

Mentioned
in
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article