- The creditors of the now-bankrupt Genesis platform are poised to achieve a significant victory, as they are anticipated to recoup an impressive 90% of the previously inaccessible monies.
- An in-principle agreement has been struck between Digital Currency Group (DCG) and Genesis creditors to address the intricate network of claims arising from the bankruptcy of Genesis.
- The agreement presents a double strategy for prospective recuperation, affording unsecured creditors the opportunity to regain a range of 70% to 90% of their entire outstanding balance in United States dollars.
- The document also presents various scenarios for recovering assets in kind, wherein creditors may possibly receive a recovery ranging from 65% to 90% based on the denomination of the digital assets. This recognition takes into account the distinct characteristics of cryptocurrency assets.
- The Genesis bankruptcy narrative commenced with the downfall of FTX, leading to further difficulties for Genesis’ lending enterprise and the temporary cessation of withdrawal services.
- DCG, confronted with substantial outstanding liabilities, has entered into a partial repayment arrangement consisting of two tranches, afterward followed by an additional disbursement of $275 million distributed over four installments subsequent to the initial partial payback.
- According to the court petition, Genesis incurred a debt above $3.5 billion, with notable creditors such as Gemini Exchange, Cumberland, Mirana, and MoonAlpha Finance.
- The aforementioned progress is regarded as a pivotal moment within the intricate realm of digital asset insolvencies, instilling optimism among creditors who have been patiently anticipating a resolution.
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