Genesis Will Return $3B to its Clients
According to a report from CoinDesk, the courts have approved Genesis’ plan to distribute $3 billion in fiat currency and cryptocurrencies to its creditors.
This amount represents approximately 77% of the total liabilities of the company. However, the parent company, Digital Currency Group (DCG), has not requested compensation. Genesis Global Holdco and its subsidiaries filed for Chapter 11 bankruptcy in January 2023, after suffering major losses due to the collapse of Three Arrows Capital and FTX.
The company owes over $3.5 billion to its 50 largest creditors. Initially, the bankruptcy claims market Xclaim estimated that the company would only recover 35% of its value.
However, creditors with claims over $10 million in Bitcoin and Ethereum are expected to receive 97-110% of their claim, while those with claims in fiat and stablecoins will receive 89-91% of their claim.
