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Bankrupt crypto lender, Genesis, has completed its restructuring process after distributing $4 billion to its creditors.
Genesis had over 100,000 creditors when it filed for bankruptcy last year, with as much as $10 billion in liabilities, and owing $3 billion to its top 50 creditors.
In May, Bankruptcy Judge Sean Lane approved the firm's Chapter 11 liquidation plan, overruling objections from its parent group, Digital Currency Group (DCG).
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Wallets began transferring $1.5 billion worth of Bitcoin and Ethereum on Friday, according to Arkham data. Genesis had reportedly reached out to creditors with instructions about receiving the funds.
On average, creditors including Gemini, VanEck, and Cumberland, will recover 64% of their in-kind crypto repayments, depending on the coin. Bitcoin creditors will receive 51.27% of their BTC while Ethereum creditors will be returned 65.87% and Solana creditors will get back 29.58%. Stablecoin creditors will receive 100% of their funds.
“Creditors will be entitled to additional recoveries following the initial distribution, depending on the results of ongoing claims reconciliation, contractual rights against third parties, and litigation,” the firm said.
In February, Genesis reached an agreement with Gemini. The Winklevoss-owned firm said it would return $1.1 billion to its Ear program customers, who will receive 100% of their assets, plus any realized gains.
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A few months later, Gemini said it would be distributing $2.18 billion in digital assets to 232,000 Gemini Earn users following Genesis's bankruptcy.
The figure represents a 242% return on assets locked up since January 2023. Those who loaned 1 Bitcoin to Genesis will receive 1 BTC back, benefiting from BTC's recent price surge.
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