Genesis Global has initiated $4 billion in creditor payouts after completing their restructuring process. As of August 2, the crypto lender began repayments to over 100,000 creditors following its January 2023 bankruptcy.
Recovery rates differ by asset type, with creditors receiving an average of 64% of pre-bankruptcy value. Bitcoin creditors recover 51.28%, Ethereum creditors 65.87%, and Solana assets 29.58%. Stablecoin and U.S. dollar creditors fare best, recovering 100% of their funds.
Genesis collapsed in 2022 due to crypto market contagion from Terra’s implosion, affecting entities like Three Arrows Capital and FTX. Despite aid from parent company Digital Currency Group, Genesis declared bankruptcy. A $2 billion settlement with New York authorities followed allegations of misleading investors.
The restructuring includes a $70 million litigation fund to pursue claims against third parties. This significant payout and ongoing litigation underscore Genesis’s strategic efforts to rebuild trust and financial stability in the crypto market.
