According to a last-minute development, Bloomberg reported that the bankrupt cryptocurrency loan company Genesis has started paying Bitcoin, other cryptocurrencies and cash to its creditors.
Genesis, together with its subsidiaries, announced the successful completion of the bankruptcy restructuring process, which began in January 2023. As part of this milestone, the firm initiated the distribution of approximately $4 billion in digital assets and US dollars to repay creditors, according to an official press release.
When Genesis filed for bankruptcy last year, it revealed debts totaling up to $10 billion and more than 100,000 creditors. The total debt of the company's 50 largest creditors, including prominent names such as crypto exchange Gemini, asset manager VanEck and trading firm Cumberland, was approximately $3 billion.
As of Friday, wallets associated with Genesis began transferring $1.5 billion worth of Bitcoin and ETH. Genesis contacted creditors and gave them instructions on how to receive their funds.
The recovery rate for creditors varies depending on the asset type. On average, creditors will receive back 64% of in-kind cryptocurrency refunds. Specifically, Bitcoin creditors will receive back 51.28% of their assets, Ethereum creditors will receive 65.87%, and Solana creditors will receive 29.58%. Creditors who owe stablecoin or US dollar debt will receive 100% of their missing funds, according to the company.
*This is not investment advice.