Genesis, the institutional lending platform, has completed its Chapter 11 restructuring plan, disbursing approximately $4 billion to creditors.
Points
- Genesis completes Chapter 11 restructuring plan.
- Disburses $4 billion to creditors.
- Bitcoin creditors to receive 51.28% recoveries in BTC.
- Ethereum creditors to receive 65.87% recoveries in ETH.
Genesis, the institutional lending platform that filed for bankruptcy in 2023, has announced the completion of its Chapter 11 restructuring plan on August 2. The firm has begun disbursing approximately $4 billion in funds to creditors, marking a significant step in resolving its financial obligations.
As part of the plan, Bitcoin creditors will receive 51.28% recoveries as valued on an in-kind basis in the form of BTC, while Ethereum creditors will receive 65.87% recoveries paid out in the digital currency. Most altcoin creditors will receive 87.65% recoveries of their digital assets, with Solana creditors receiving 29.58%.
The restructuring plan also includes a $70 million litigation fund for creditors seeking further legal action against third parties, such as Genesis’s parent company Digital Currency Group （DCG）.
Genesis was deeply affected by the crypto market contagion event of 2022, which led to the collapse of several highly leveraged firms, including Three Arrows Capital. The fallout from these events drove Genesis into bankruptcy, necessitating the restructuring process to address its liabilities.
解説
- The completion of Genesis’s restructuring plan and disbursement of $4 billion to creditors marks a pivotal moment in the resolution of the firm’s financial crisis.
- The varied recovery rates for different cryptocurrencies reflect the complexities involved in the restructuring process and the specific agreements with creditors.
- The establishment of a litigation fund highlights the ongoing efforts to seek accountability and recover additional funds through legal channels.
- Genesis’s bankruptcy was part of a broader market downturn that exposed vulnerabilities in highly leveraged crypto firms, underscoring the need for more robust risk management practices.
- The resolution of Genesis’s bankruptcy may provide a blueprint for other firms navigating similar challenges in the crypto industry.