After a tumultuous journey through bankruptcy, Genesis Global has finally emerged on the other side.
According to a press release, Genesis Global has successfully completed its bankruptcy reorganization process, a journey that began in January 2023. The company announced on Friday that it has started distributing approximately $4 billion in digital assets and cash to its creditors.
With over 100,000 creditors and liabilities reaching as high as $10 billion, Genesis faced a significant financial challenge when it filed for bankruptcy last year. Among its largest creditors were prominent names in the crypto industry such as Gemini, VanEck, and Cumberland.
Wallets associated with Genesis began moving $1.5 billion in bitcoin and ether on Friday. The company has contacted creditors with instructions on how to access these funds.
Genesis creditors will recover an average of 64% of their in-kind cryptocurrency repayments, though this percentage will vary depending on the specific coin. Bitcoin creditors will receive 51.28% of their bitcoin, Ethereum creditors 65.87%, and Solana creditors 29.58%. Those owed stablecoins or U.S. dollars will receive 100% of their missing funds.
Creditors may be entitled to additional recoveries following the initial distribution, based on the results of ongoing claims reconciliation, contractual rights against third parties, and litigation.
Gemini announced in May that it had fully recovered client funds previously managed by Genesis under its “Earn” program.
Genesis was among numerous financial firms that collapsed during the 2022 crypto market downturn triggered by the implosion of Terra and FTX.
The company, part of Digital Currency Group (DCG), initially faced financial difficulties following the downfall of Three Arrows Capital and received a significant loan from DCG to stay afloat.
However, subsequent losses tied to Alameda Research led to Genesis’ bankruptcy filing. Both DCG and Genesis are now defendants in a lawsuit brought by New York’s Attorney General, alleging investor fraud through misrepresentations of Genesis’ financial health.
