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 and cover 77% of customer claims. The digital currency group will not receive any payouts from the Genesis bankruptcy plan.
Over the past three days, Genesis Trading has moved approximately 32,256 BTC (worth roughly $2.12 billion) and 256,775 ETH (worth roughly $838 million) to various addresses.
The large asset transfer is seen as part of the company's ongoing efforts to manage repayments to creditors under its financial restructuring plan.
Genesis Trading has sent 32,256 BTC ($2.12 billion) and 256,775 ETH ($838 million) to multiple addresses over the past three days and may be filing for bankruptcy to repay its debts.
And #GenesisTrading transferred 13,291 BTC ($830.7M) to #Coinbase between June 12th and July 15th… pic.twitter.com/EpLdn5PUJn
— Lookonchain (@lookonchain) August 2, 2024
Genesis Trading Settlement Proposal Approved
Genesis' turmoil began with the collapse of its FTX cryptocurrency exchange in November 2022, severely impacting the company's derivatives business.
Genesis halted withdrawals and filed for Chapter 11 bankruptcy protection in January 2023 due to significant losses related to the failure of FTX and the collapse of Three Arrows Capital.
At the time, the company owed more than $3.5 billion to its major creditors.
In this difficult climate, Genesis recently reached a court-approved settlement that aims to return $3 billion to its customers, covering approximately 77% of their total claims.
Shortly after Genesis' bankruptcy filing, bonds were trading at just 35% of their value on bond trading platforms. However, bonds are now trading at significantly higher prices, with bonds over $10 million trading at 97%-110% of their value and smaller bonds trading at 74%-94%.
Digital Currency Group (DCG) misses out on this settlement
Genesis' parent company, Digital Currency Group (DCG), will not benefit from the settlement, as the court ruled that Genesis' assets were not valuable enough to provide DCG with any recovery as a shareholder.
The decision was inspired by DCG's failed attempt to cap customer claims to the value of the cryptocurrency in January 2023, which would have allowed for full repayment to customers and recovery for DCG.
In addition, DCG assumed $1.1 billion of Genesis' debt following the collapse of Three Arrows Capital, but this obligation did not cover the losses.
