A subsidiary of Barry Silbert’s Digital Currency Group (DCG), which collapsed during the last crypto winter, has started paying back its creditors after completing bankruptcy restructuring.
In a new press release, Genesis Global, along with affiliated companies, has already begun distributing approximately $4 billion in digital assets and cash to creditors in accordance with the Chapter 11 bankruptcy plan.
Genesis says creditors will recover an average of 64% of their holdings on an in-kind, coin-for-cash basis.
Bitcoin creditors will get 51.28% back in BTC, while Ethereum (ETH) creditors will get 65.87%.
Meanwhile, altcoin creditors other than Solana holders will receive an average of 87.65% chargebacks. Solana’s creditors will get back almost 30% of their holdings.
Creditors in US dollars and stablecoins will receive 100% of their assets back, payable in USD.
The statement said that creditors may have additional claims after the initial distribution, depending on the outcome of ongoing damages settlement, contractual rights against third parties and litigation.
“As part of the plan, creditors have established a $70 million lawsuit fund to take action against several third parties, including Digital Valuta Group, Genesis’ parent company. The $70 million litigation fund will consist of $26 million in BTC, $13 million in ETH and $31 million in USD.”
In February, DCG objected to the bankruptcy plan, saying it would give a larger payout to certain creditors and leave nothing for shareholders.
But the court ruled that Genesis does not have “nearly enough assets” for the venture capital firm to recover from bankruptcy.
Genesis customers’ funds had been frozen since November 2022 when the now-bankrupt cryptocurrency lender halted withdrawals due to liquidity issues caused by the collapse of crypto hedge fund Three Arrows Capital.
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Generated image: Midjourney