- Genesis Global and its parent company DCG have agreed to resolve creditor claims.
- The agreement from the court filing on Tuesday shows that unsecured creditors are set to recover between 70% to 90% of their USD claims.
- Digital asset claims will be recovered by 65% to 90% on an in-kind basis, according to the bankruptcy court proceedings.
Genesis Global has reached an agreement with its parent company, the Digital Currency Group, on a plan to pay back $630 million in unsecured loans for potential claims. The agreement is beneficial to the bankrupt lender’s creditors as it could result in a 70% to 90% recovery of USD claims.
The court filing in the US bankruptcy court in the Southern District of New York shows details of the agreement between the two entities.
Also read: Genesis creditors won’t get full value of their claims, bankrupt crypto lender files updated plan
Genesis Global to pay back creditors claims
According to a Reuters report and court filings from Tuesday, the bankrupt crypto lender Genesis has reached an agreement with Digital Currency Group to pay back its creditors. As of May, the lender was expected to pay back $630 million in unsecured loans. However, bankruptcy court proceedings have slowed down the timeline of paying back users.
Genesis first halted withdrawals in November 2022, along with Samuel Bankman Fried’s FTX exchange and Alameda Trading firm’s collapse. Genesis has been under bankruptcy protection since then, working out a plan to pay back creditors.
The latest filing has the agreement and the plan that could lead to a recovery of between 70% and 90% of US Dollar equivalent for unsecured creditors and between 65% and 90% of digital asset or in-kind recovery. The lender’s creditors have waited months for a resolution of the claims, and recent development brings them one step closer to making them whole.
Pay back agreement from Tuesday’s filings
Bankrupt crypto lender Genesis owes over $3.5 billion to top 50 creditors and parent DCG has two types of existing liabilities:
- $630 million in unsecured loans that were due in May 2023
- $1.1 billion under unsecured promissory notes due in 2032
The filing contains a new partial repayment agreement that sets the payback process in two tranches. Approximately $328.8 million will be paid within the next two years, while $830 million in the next seven years.
Genesis’ parent company will also pay back $275 million in four installments for the May 2023 maturity loans, according to the court’s filing.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Could Worldcoin price shoot up 45% ahead of OpenAI’s live stream on Monday?
Worldcoin has formed a double bottom around a key support level, suggesting a potential accumulation. If the OpenAI’s Monday live stream has a positive impact on Artificial Intelligence field, it could positively impact WLD and other AI-based tokens.
Here’s what needs to happen for The Graph price to revisit $0.422
The Graph price trades inside the $0.192 to $0.494 range. Investors need to wait for GRT to overcome $0.343 before being bullish on GRT. If successful, GRT could rally 50% and revisit the $0.422 hurdle. A decisive daily candlestick close below $0.192 will invalidate the bullish thesis.
SingularityNET price could bounce 30% if AGIX can hold this level
SingularityNET price has been consolidating around the bottom of the $0.903 to $1.475 range for nearly a month. With some AI-tokens showing signs of revival, AGIX needs to be enalyzed for potential breakout opportunities like Arkham (ARKM).
Arkham price primed for a recovery rally ahead of OpenAI’s announcement
Arkham price eyes a potential reversal as it clears key hurdles. ARKM likely to rally 27% if it can overcome $2.74 resistance level. A breakdown of $2.28 wil invalidate the bullish thesis for the AI-based token.
Bitcoin: Why BTC is close to a bottom
Bitcoin (BTC) price efforts of a recovery this week have been countered by selling pressure during the onset of the American session. However, the downside potential appears to have been capped. Markets have noted significant trading differences between sessions, and while the Asian market showed strength, whatever ground they were able to cover was oftentimes wiped out by traders in the US.