Genesis Completes Restructuring and Commences Distributions to Creditors

NEW YORK--(BUSINESS WIRE)-- Genesis Global Holdco, LLC (“GGH”), Genesis Global Capital, LLC (“GGC”) and Genesis Asia Pacific Pte. Ltd. (“GAP”, together with GGH and GGC, “Genesis” or the “Company”) today announced the completion of its restructuring on August 2, 2024 (the “Effective Date”).

Genesis has commenced making approximately $4 billion in distributions of digital assets and US dollars to creditors pursuant to the chapter 11 plan (the “Plan”). Unlike many bankruptcy cases, the Plan does not seek to cap recoveries at petition date value. As part of the initial distribution, creditors will receive on average 64% recoveries on an in-kind, coin by coin, basis as described below:

• On the Effective Date, BTC creditors will receive 51.28% recoveries as valued on an in-kind basis in the form of BTC, and ETH creditors will receive 65.87% recoveries as valued on an in-kind basis in the form of ETH.

• As soon as practicable after the Effective Date, altcoin creditors (other than Solana) will receive on average 87.65% recoveries as valued on an in-kind basis, and Solana creditors will receive 29.58% recoveries as valued on an in-kind basis.

• On the Effective Date, US dollar and stablecoin creditors will receive 100% recoveries on an in-kind basis in the form of US dollars.

• 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.

Creditors have been contacted with instructions on how to receive distributions in digital assets and US dollars. For questions with respect to distributions, creditors can contact [email protected].

As part of the Plan, creditors have established a $70 million litigation fund to pursue causes of action against various third parties, including Digital Currency Group, which is Genesis’ corporate parent. The $70 million litigation fund will consist of $26 million in BTC, $13 million in ETH, and $31 million in USD. Counsel to the Litigation Oversight Committee has not been selected but will be shortly.

Mark Renzi, a Managing Director at BRG, has been appointed as the plan administrator to oversee the administration of the Plan and the Company’s wind-down process. Pursuant to the Plan, a new board of GGH has been appointed, along with the Wind-Down Oversight Committee and the Litigation Oversight Committee.

For more information on Genesis’ restructuring, including access to court documents, please visit https://restructuring.ra.kroll.com/genesis.

Cleary Gottlieb Steen & Hamilton LLP is legal counsel to the Company and the Wind-Down Oversight Committee. Alvarez & Marsal served as financial advisor and Moelis & Company acted as investment banker.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240802215732/en/

FGS Global for Genesis
[email protected]

Source: Genesis

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