Genesis completes restructuring and begins distribution of $4bn to creditors
Collapsed crypto lender Genesis Global and affiliates finished restructuring and began to distribute about $4 billion in digital assets and cash to creditors, according to a news release.
As part of the initial distribution, creditors will receive an average of 64% recoveries, depending on the type of crypto involved.
Bitcoin creditors will receive 51.28% recoveries as valued on an in-kind basis, and Ethereum creditors will receive 65.87% recoveries. Solana creditors will be paid 29.58%, other altcoin holders will receive 87.65%, while stablecoin and US dollar creditors will receive 100%.
Arkham Intelligence said the distributions had begun, according to a post on X, as a wallet linked to Billionaire Mark Cuban had received $19.9 million in Ethereum from Genesis.
Genesis, owned by Digital Currency Group (DCG), filed for bankruptcy in January 2023, owing at least $3.4 billion to creditors at the time, DL News has reported.
The company added that creditors may receive more funds after the initial distribution, based on ongoing claims reconciliation, contractual rights, and litigation outcomes, according to the news release.
As part of the plan, a $70 million litigation fund has been established to pursue legal action against various third parties, including corporate parent DCG, the release said.
The fund will consist of $26 million in Bitcoin, $13 million in Ethereum, and $31 million in US dollars.
Counsel to the litigation oversight committee has not been selected, but will be shortly, according to the post.
