Genesis has received court approval to distribute $3 billion in fiat money and cryptocurrencies to its creditors, CoinDesk reports.
This will represent approximately 77% of the firm's total liabilities. The parent company-Digital Currency Group (DCG) - is not included in the list of applicants for compensation.
Genesis Global Holdco and its subsidiaries filed for Chapter 11 bankruptcy in January 2023. The holding company suffered significant losses as a result of the collapses of Three Arrows Capital and FTX. Debt to the 50 largest creditors exceeded $3.5 billion.
Initially, the Xclaim bankruptcy claims market estimated that the company could recover funds at 35% of their value.
At the time of writing, for amounts over $10 million in Bitcoin and Ethereum, the figure is 97-110%, and in fiat and stablecoins-89-91%.
Regarding the parent company, Judge Sean Lane stated:
"The data clearly show that the debtors property does not have sufficient value to provide DCG with compensation as a shareholder after payment to unsecured creditors."
The firm previously advocated that customer claims should be limited to the value of cryptocurrencies as of the date of Genesis ' bankruptcy. The judge added that DCG still "loses billions" even if such an option is adopted.
In the decision, he noted that DCG assumed the $1.1 billion debt of Genesis, which arose as a result of bankruptcy. However, the 10-year promissory note provided did not cover the losses, which drew the attention of law enforcement officers to the holding's financial practices.
In February, the New York State Attorney General's Office tripled the size of the alleged fraud to more than $3 billion in a case against Gemini, Genesis, and DCG.
This will represent approximately 77% of the firm's total liabilities. The parent company-Digital Currency Group (DCG) - is not included in the list of applicants for compensation.
Genesis Global Holdco and its subsidiaries filed for Chapter 11 bankruptcy in January 2023. The holding company suffered significant losses as a result of the collapses of Three Arrows Capital and FTX. Debt to the 50 largest creditors exceeded $3.5 billion.
Initially, the Xclaim bankruptcy claims market estimated that the company could recover funds at 35% of their value.
At the time of writing, for amounts over $10 million in Bitcoin and Ethereum, the figure is 97-110%, and in fiat and stablecoins-89-91%.
Regarding the parent company, Judge Sean Lane stated:
"The data clearly show that the debtors property does not have sufficient value to provide DCG with compensation as a shareholder after payment to unsecured creditors."
The firm previously advocated that customer claims should be limited to the value of cryptocurrencies as of the date of Genesis ' bankruptcy. The judge added that DCG still "loses billions" even if such an option is adopted.
In the decision, he noted that DCG assumed the $1.1 billion debt of Genesis, which arose as a result of bankruptcy. However, the 10-year promissory note provided did not cover the losses, which drew the attention of law enforcement officers to the holding's financial practices.
In February, the New York State Attorney General's Office tripled the size of the alleged fraud to more than $3 billion in a case against Gemini, Genesis, and DCG.
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