A subsidiary of Barry Silbert’s Digital Currency Group (DCG) that collapsed during the last crypto winter has started repaying its creditors after completing bankruptcy restructuring.
In a new press release, Genesis Global, along with affiliate companies, has already commenced the distribution of approximately $4 billion in digital assets and cash to creditors in accordance with the Chapter 11 bankruptcy plan.
Genesis says that on average, creditors will recover 64% of their holdings on an in-kind and coin-by-coin basis.
Bitcoin creditors will recover 51.28% in BTC while Ethereum (ETH) creditors will get 65.87%.
Meanwhile, altcoin creditors, except Solana holders, will receive 87.65% recoveries, on average. Solana creditors will recover nearly 30% of their holdings.
US dollar and stablecoin creditors will recover 100% of their holdings to be paid in USD.
The statement says creditors may get additional recoveries after the initial distribution depending on the outcome of ongoing claims reconciliation, contractual rights against third parties and litigation.
“As part of the Plan, creditors have established a $70 million litigation fund to pursue causes of action against various third parties, including Digital Currency Group, which is Genesis’ corporate parent. 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 against the bankruptcy plan saying it would give greater distribution to certain creditors and leave nothing for equity holders.
But the court ruled that Genesis has “nowhere near enough assets” to allow the venture capital firm to recover from the bankruptcy.
Genesis customer funds had been frozen since November 2022 when the now-bankrupt crypto lender halted withdrawals due to liquidity problems caused by the collapse of crypto hedge fund Three Arrows Capital.
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