Genesis Global has completed its restructuring process after filing for bankruptcy in January 2023 and has begun distributing $4 billion in digital assets and cash to repay creditors.
The company, which had over 100,000 creditors and up to $10 billion in liabilities, transferred $1.5 billion in bitcoin and ether on Friday.
Creditors will recover an average of 64% of their cryptocurrency holdings, with variations depending on the specific coin, and will receive 100% of stablecoins or U.S. dollars owed.
Additional recoveries may be possible based on ongoing claims and litigation.
Genesis, affected by the market downturn of 2022 and the collapse of Three Arrows Capital, received a loan from its parent company, Digital Currency Group (DCG), but further losses led to bankruptcy.
Genesis and DCG face a lawsuit from New York Attorney General Letitia James, alleging they defrauded investors by misrepresenting Genesis’ financial health.
Image Credit: Pixabay
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
