Genesis has initiated the distribution of approximately $4 billion in digital assets and US dollars to its creditors. This development follows the conclusion of the company’s restructuring process, as stated on August 2, 2024.
Creditors will recover an average of 64% of their crypto claims, with the exact percentage varying based on the type of cryptocurrency held. Bitcoin holders will recover 51.28% of their assets, Ethereum creditors will receive 65.87%, and Solana creditors will get 29.58%. Holders of other altcoins will see 87.65% of their assets returned, while those owed stablecoins or US dollars will receive the full amount.
Further distributions may occur as ongoing claims reconciliation, contractual rights, and litigation outcomes are finalized. In conjunction with the asset distribution, Genesis has created a $70 million litigation fund to pursue legal actions against various parties, including its parent company, Digital Currency Group (DCG). The fund consists of $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 company’s wind-down process. Additionally, a new board of directors has been appointed to guide the firm’s final operations.
This announcement marks the end of a prolonged bankruptcy process that started in January 2023, when Genesis and its subsidiaries filed for Chapter 11 protection in New York. The filing was a result of substantial losses following the collapse of the FTX exchange, with Genesis reportedly owing over $3.5 billion to its top 50 creditors at that time.
On-chain data from Arkham Intelligence indicates that Genesis has begun repaying its creditors. A wallet linked to billionaire Mark Cuban received $19.9 million in ETH from Genesis. Earlier reports showed that Genesis had moved 16,600 BTC, worth $1.1 billion, and 166,300 ETH, valued at $521.1 million, in several transactions on August 2 to address other creditor claims.
Lookonchain reported that Genesis started the repayment process earlier in the week, moving around $3 billion in crypto, which included 32,256 BTC (valued at approximately $2.12 billion) and 256,775 ETH (worth about $838 million) over three days.
