Bitcoin Recovery Rate
Genesis Global has initiated the distribution of $4 billion in creditor payouts after successfully completing its restructuring process. Over 100,000 creditors are now receiving repayments, with Bitcoin creditors recovering 51.28% of their assets. Ethereum creditors are seeing a recovery rate of 65.87%, while Solana asset holders are receiving 29.58% of their pre-bankruptcy value.
Genesis Bankruptcy and Fallout
Genesis faced bankruptcy in January 2023 following the collapse of Terra, leading to a domino effect in the crypto industry. The turmoil also affected entities like Three Arrows Capital and FTX due to Terra’s implosion. To mitigate the financial woes, parent company Digital Currency Group stepped in, but legal issues with Gemini and New York Attorney General Letitia James’s lawsuit further complicated the situation.
Genesis’s Recovery Plan
In the aftermath, Genesis is moving forward with creditor repayments and additional recoveries are expected based on ongoing claims reconciliation and litigation outcomes. With a $70 million litigation fund in place, the company is poised to pursue legal recourse against third parties, including Digital Currency Group, as part of its restructuring strategy.
