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In a January open letter, Gemini co-founder Cameron Winklevoss accused entities related to Genesis of inflating their assets.
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Own this piece of crypto history
Genesis, an institutional lending platform that filed for bankruptcy in 2023, announced the completion of its Chapter 11 restructuring plan on Aug. 2, and the disbursement of approximately $4 billion in funds to the injured parties.
As part of the plan, Bitcoin (BTC) creditors “will receive 51.28% recoveries as valued on an in-kind basis in the form of BTC,” and Ether (ETH) creditors will receive 65.87% recoveries paid out in the digital currency.
Most altcoin creditors will receive 87.65% recoveries of their digital assets, with Solana (SOL) being the notable exception. Creditors reclaiming SOL holdings will be subject to a 29.58% recovery rate, once again payable on an in-kind basis. Stablecoin and cash creditors are eligible to recoup 100% of their losses in the form of US dollars, according to the restructuring plan.
A $70 million litigation fund for creditors seeking further legal action against any third parties to the bankruptcy, such as Genesis’ parent company Digital Currency Group (DCG), has also been established
The fallout from the 2022 crypto contagion
Genesis engaged in institutional lending, borrowing funds from firms like the Winklevoss twins’ Gemini and lending it to firms like Three Arrows Capital. Between 2022 and 2023, Genesis became a victim of the contagion brought on by the collapse of Three Arrows Capital and, later, the FTX exchange.
Related: Genesis-labelled address moves $720M BTC to Coinbase, pointing to start of asset liquidations
The fallout from the Three Arrows Capital default drove a wedge between Gemini co-founder Cameron Winklevoss and Digital Currency Group CEO Barry Silbert. Winklevoss has publicly slammed the DCG CEO on several occasions, accusing him of fraud and an inability to run the corporate conglomerate, which is the parent company of Grayscale, Foundry, Luno, and Genesis.
Genesis settles with the Securities and Exchange Commission
More recently, Genesis agreed to a $21 million settlement with the Securities and Exchange Commission (SEC) for allegedly selling unregistered securities alongside the Geminin Earn program.
Following the settlement, SEC chief Gary Gensler remarked that all cryptocurrency lending providers and other digital asset services need to comply with existing securities laws.
Magazine: WazirX hackers prepped 8 days before attack, swindlers fake fiat for USDT: Asia Express
This article first appeared at Cointelegraph.com News
