- Genesis transferred $2.12 billion worth of BTC and $838 million worth of ETH as part of its bankruptcy restructuring.
- Genesis will return $3 billion to creditors, covering 77% of customer claims.
- Digital Currency Group will not receive any payments 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.
These significant asset transfers are seen as part of the company’s efforts to manage creditor repayments under its ongoing financial restructuring plan.
Genesis Trading transferred 32,256. $Bitcoin($2.12B) and 256,775 $Ethereum(US$838 million) has been transferred to multiple addresses over the past three days, and may be filing for bankruptcy to repay the debt.
and #Genesis Trading 13,291Transferred $Bitcoin($830.7M) ~ #coinbase From June 12th to July 15th… pic.twitter.com/EpLdn5PUJn
— LookOnChain (@lookonchain) August 2, 2024
Genesis Trading settlement plan approved.
Genesis’ turmoil began with the collapse of the FTX cryptocurrency exchange in November 2022, which had a serious impact on the company’s derivatives business.
Genesis suffered massive losses due to the FTX debacle and the failure of Three Arrows Capital, and in January 2023, it suspended withdrawals and filed for Chapter 11 bankruptcy protection.
At the time, the company owed more than $3.5 billion to its largest creditor.
Against this backdrop, Genesis recently reached a court-approved settlement plan that aims to return $3 billion to customers, which will cover approximately 77% of total customer claims.
Immediately after Genesis filed for bankruptcy, claims were trading at just 35% of their value on the claims trading platform. However, claims are now trading at significantly higher prices, with claims over $10 million trading at 97-110% of their value, and smaller claims trading at 74-94%.
The possibility that the Digital Currency Group (DCG) may fail to reach this agreement
Genesis’ parent company, Digital Currency Group (DCG), will not benefit from the settlement, as the court ruled that there was not enough value in Genesis’ assets for DCG to recover as an equity owner.
This decision was influenced by DCG’s failed attempt to cap customer billing to the value of cryptocurrency in January 2023, which would have resulted in full reimbursement to customers and the potential for DCG to recover.
DCG also took on $1.1 billion of Genesis’ debt following the collapse of Three Arrows Capital, but that debt did not cover the losses.