Genesis Creditors Might Recover 80% With New Restructuring Plan
Genesis Global, a crypto brokerage firm for institutional investors, was hit hard by the market crashes of 2023
The company eventually had to file for chapter 11 bankruptcy and currently restructuring to pay off its creditors
As per the leading Genesis creditor, Donut, the present restructuring plan “has a recovery rate of approximately $0.80 per dollar deposited
During the restructuring of Genesis global, a significant creditor has
The possibility of recovering 80% of creditors’ funds.
Last year, the cryptocurrency and blockchain industry experienced some devastating crashes, including those of the Luna, 3AC, and FTX exchanges. These crashes had a far-reaching impact, not only on their customers but also on the stakeholders who had significant exposure to these projects.
Genesis Global, a crypto brokerage firm for institutional investors, was hit hard by the market crashes of 2023, ultimately leading to the company filing for Chapter 11 bankruptcy in January of that year. This decision was made in response to a severe liquidity crisis following the collapse of FTX.
According to the reports, DCG will contribute its equity in Genesis Global to the Genesis Global Holdco, the parent company of Genesis enabling Genesis to expand its reach and capitalize on present opportunities. With this, all subsidiaries of Genesis Global will come under the legislation of a single entity.
During this restructuring, the Gemini crypto exchange will also contribute $100 million for the users whose funds were locked in the ‘Gemini Earn’ program. With this, a collective effort could bring back life to the dead investment brokerage fund and eventually pay off its creditors.
As per the leading Genesis creditor, Donut, the present restructuring plan “has a recovery rate of approximately $0.80 per dollar deposited, with a path to $1.00”. In the first hearing of the Chapter 11 Bankruptcy filing for Genesis Global, the company claimed that it would be working towards a quick resolution for creditors' concerns and would be able to move out of the proceedings by the end of May 2023.
These declarations from the company and the proposed restructuring efforts from the decision makers are giving a positive signal to its creditors. DCG is also willing to contribute its share of equity, depicting its concerns for their reputations in the market.
To keep getting more updates on DCG and Genesis Global, do not forget to follow CoinGabbar on all social media platforms.
Also, Read - How Could US Economy Risks Affect Crypto Market?
