- As part of its bankruptcy reorganization, Genesis transferred $2.12B in BTC and $838M in ETH.
- Genesis will return $3B to creditors, covering 77% of customer claims.
- Digital Money Group will not receive any compensation from Genesis’ bankruptcy plan.
Over the past three days, Genesis Trading has moved approximately 32,256 BTC (worth approximately $2.12 billion) and 256,775 ETH (worth approximately $838 million) to various addresses.
The major asset transfer is seen as part of the company’s efforts to manage creditor repayments under its ongoing financial restructuring plan.
Genesis Trading has transferred 32,256 Bitcoin USD($2.12B) and 256,775 $ETH($838 million) sent to multiple addresses in the past 3 days, and bankruptcy proceedings may be underway to pay off the debt.
and #GenesisTrading Transferred 13,291 Bitcoin USD($830.7 million) to #Coinbase From June 12th to July 15th… pic.twitter.com/EpLdn5PUJn
— Lookonchain (@lookonchain) August 2, 2024
Genesis Trading Bankruptcy Repayment Plan
In the recent financial restructuring of Genesis Trading, the company has successfully transferred a large amount of cryptocurrency assets to address creditor repayments. This move comes after a tumultuous period that began with the collapse of FTX cryptocurrency exchange.
Following FTX’s collapse and subsequent bankruptcy filing by Genesis, the company owed over $3.5 billion to creditors, leading to the halt of withdrawals and filing for Chapter 11 bankruptcy protection in January 2023.
After months of negotiations and court proceedings, a settlement plan was approved to return $3 billion to customers, covering a significant portion of their claims. The plan aims to provide approximately 77% of the total value of a customer’s claim.
DCG Exclusion from Settlement
Despite the approval of the repayment plan, Digital Currency Group (DCG), the parent company of Genesis Trading, will not benefit from the settlement. The court ruled that the value of Genesis’ assets was insufficient to provide DCG with any recovery as a shareholder.
This decision was influenced by DCG’s previous attempt to cap customer claims based on cryptocurrency values, which would have potentially resulted in losses for the company. Additionally, DCG had assumed a significant amount of debt incurred by Genesis in the bankruptcy of Three Arrows Capital, further impacting their exclusion from the settlement.
