Genesis Global Holdco LLC, which underwent bankruptcy was permitted by the court to return $3 Billion to its customers under bankruptcy liquidation plan.
The long-awaited Genesis bankruptcy case, finally ended as the court approved Genesis to return $3 Billion to its customers. The company went bankrupt due to the collapse of FTX and Three Arrows Capital and filed for Chapter 11 bankruptcy protection in January 2023.
Court’s Approval of Genesis’s Bankruptcy Liquidation Plan
Genesis got the green light from a court to return $3 Billion in cash and cryptocurrencies to the people they owe. The amount is about 77% of what the customers said they should get back. BSCN reported about the Genesis bankruptcy liquidation plan on X.
GENESIS TO RETURN $3B IN CUSTOMER ASSETS UNDER THE FINALIZED BANKRUPTCY PLAN
— BSCN (@BSCNews) May 20, 2024
– Genesis has secured court approval to return $3 billion in cash and crypto to creditors. This represents about 77% of customer claims.
– However, the parent company, Digital Currency Group (DCG) will… https://t.co/KajXR3IUzd pic.twitter.com/HtLoa5fvHg
For big claims over $10 million in Bitcoin (BTC) or Ether (ETH), they’re being valued a bit higher than what they’re worth, between 97% to 110%. But for smaller claims under $1 Million, they’re valued a bit lower, between 74% to 94%.
At press time, BTC was trading at $66,935.97, after a 0.02% spike intraday with a market cap of $1,318,435,497,979. ETH on the other hand, showcased a bullish trend and stood at $3,090.24, after a 0.24% intraday surge.
When it comes to stablecoins or fiat currency, claims worth $1 Million to $10 Million are being valued close to their real worth, between 89% to 91%. And for claims less than $1 Million, they’re valued between 73% to 88%.
What Happened With Genesis Global Holdco LLC?
Genesis Global Holdco LLC, which owns Genesis, went to court in New York in January 2023 to file for Chapter 11 bankruptcy protection. The company lost a lot of money when Three Arrows Capital and FTX failed.
At the time of bankruptcy, Genesis owed more than $3.5 Billion to their customers. Bankruptcy claim marketplace Xclaim priced Genesis’s claims at only 35% of what they were worth at the start of 2023.
DCG, Genesis’s parent company wanted to limit how much customers could ask for to the value of the digital money in January 2023. The company thought this would let them pay everyone back and maybe even get some money back for themselves.
In November 2023, DCG and Genesis told everyone they had a plan to fix things. DCG has already given back $227.3 Million and plans to pay $275 Million more by April. This is to settle a court case about $620 Million in loans.
$8 Million Fine for Compliance Failings
According to the Wall Street Journal, Genesis Global Trading, a company that deals with digital money, decided to pay $8 Million to settle a case in New York. The company was accused of not doing enough to stop money laundering and protect its computer systems.
Genesis Global Trading is a part of Genesis Global Holdco LLC and shut down its digital money trading in the U.S. in September. Recently, the company made a deal with the New York financial authorities and will give up the special license that let it do crypto business in New York.
