Genesis finally begins repayments

-

Bankrupt crypto lender Genesis has completed its restructuring process and started repaying its creditors.

Big transfers from Genesis, now we know these are for repayments

Genesis and its associated companies have announced the completion of their restructuring after declaring bankruptcy three years ago.

Genesis initially proposed a repayment plan in November last year, which faced opposition from its parent company, Digital Currency Group. DCG argued that paying creditors 77% of their deposits from the time of bankruptcy would give investors more than they were owed due to the increased value of crypto assets over the past year.

This sounds like a thief’s argument, because creditors deposited 100% of their deposits, regardless of its actual exchange rate.

Court-approved repayment plans

In May 2024, US Judge Sean Lane of the Bankruptcy Court Southern District of New York approved Genesis’s repayment plan.

The company plans to repay $4 billion in cryptocurrencies and fiat currencies to its creditors.

Bitcoin creditors will receive 51.28% of their claims in kind, Ethereum creditors will get 65.87%, and Solana creditors will be paid 29.58%.

Creditors receiving stablecoins or cash will be paid 100% of their claims in US Dollars.

On Friday, Genesis executed multiple transactions likely related to its repayment plan. Arkham Intelligence reported that Genesis moved $1.5 billion, including 16,600 BTC and 166,300 ETH.

genesis
Source: X

Repayment could means new supply coming to the market

Large repayments by bankrupt crypto companies often lead to market sell-offs as creditors may quickly liquidate their newly received assets, especially if there was a prolonged time between the insolvency and the repayment.

Genesis began its repayment plan just a month after the defunct exchange Mt. Gox started settling its creditors, but Mt. Gox victims had to wait a decade.

The crypto market has shown a similar reaction, with the total market cap declining by 5.52% in the past day to $2.18 trillion.

Have you read it yet? Ethereum selling spree is finally over after 80% drop in ETFs outflows?


Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Kriptoworld.com accepts no liability for any errors in the articles or for any financial loss resulting from incorrect information.

LATEST POSTS

Ripple’s RLUSD takes center stage, it’s tradeable on the Kraken

Kraken just gave Ripple's RLUSD stablecoin the green light for trading. RLUSD it's a USD-pegged token backed by real cash and government securities, operating on...

PayPal announced that Solana and Chainlink join the party

PayPal just made a big move, and for the first time, users in the U.S. and its territories can buy, sell, hold, and transfer Solana...

Binance is the unstoppable force in crypto trading?

Yes. Binance is still the king of crypto trading, and it's not just a crown, it's a dominion that's been solidified with $1.9 trillion in...

VanEck’s BNB ETF is coming?

VanEck just made a big move by filing for a Binance Coin ETF in Delaware. This is the first of its kind in the U.S.,...

Most Popular

Guest posts