Genesis Global Holdco: $3 Billion Wind-Down Plan
Genesis Global Holdco, LLC and its operating affiliates Genesis Global Capital, LLC and Genesis Asia Pacific Pte. Ltd. filed chapter 11 petitions on January 19, 2023, in the U.S. Bankruptcy Court for the Southern District of New York. The cases followed successive crypto-market failures — the Luna/TerraUSD collapse, the liquidation of Three Arrows Capital, and the November 2022 failure of FTX — that drained liquidity from the institutional lending platform and forced a pause on all lending and borrowing activity. Total liabilities were approximately $5.1 billion.
After more than a year of contested plan negotiations, Judge Sean H. Lane signed a confirmation order on May 31, 2024, approving a wind-down plan that would return approximately $3 billion to customers. The plan resolved disputes with parent company Digital Currency Group, incorporated a settlement with crypto exchange Gemini, and established a framework for distributing cash and digital assets to creditors across three separately classified debtor estates. The plan became effective on August 2, 2024, and the wind-down debtors commenced distributions to creditors on the same date.
Sources (40)
- approximately $5.1 billionCourt filing (opens in a new tab)
- confirmation orderCourt filing (opens in a new tab)
- became effective on August 2, 2024Court filing (opens in a new tab)
- appointed an official committee of unsecured creditorsCourt filing (opens in a new tab)
- settlement effective date occurredCourt filing (opens in a new tab)
- application to retain M3 Advisory PartnersCourt filing (opens in a new tab)
- notice of plan support agreementCourt filing (opens in a new tab)
- amended joint chapter 11 planCourt filing (opens in a new tab)
- Cleary Gottlieb Steen & Hamilton LLP as lead counselCourt filing (opens in a new tab)
- Alvarez & Marsal North America, LLC as financial advisorCourt filing (opens in a new tab)
- Moelis & Company LLCCourt filing (opens in a new tab)
- Morrison Cohen LLPCourt filing (opens in a new tab)
- Kobre & Kim LLPCourt filing (opens in a new tab)
- White & Case LLP as counselCourt filing (opens in a new tab)
- Houlihan Lokey Capital, Inc. as investment bankerCourt filing (opens in a new tab)
- Kroll Restructuring Administration LLCCourt filing (opens in a new tab)
- set for May 22, 2023Court filing (opens in a new tab)
- order authorizing sales, transfers, or redemptions of trust assetsCourt filing (opens in a new tab)
- notice filed by the debtorsCourt filing (opens in a new tab)
- Texas State Securities Board and Texas Department of BankingCourt filing (opens in a new tab)
- U.S. Securities and Exchange CommissionCourt filing (opens in a new tab)
- consent to the Cash Cloud DIP facilityCourt filing (opens in a new tab)
- order granting that consentCourt filing (opens in a new tab)
- motion seeking authority to consent to priming of certain liensCourt filing (opens in a new tab)
- granted that motionCourt filing (opens in a new tab)
- October 2024Court filing (opens in a new tab)
- December 2024Court filing (opens in a new tab)
- January 2025Court filing (opens in a new tab)
- October 2025Court filing (opens in a new tab)
- moved to dismissCourt filing (opens in a new tab)
- second extension of the deadline to object to claimsCourt filing (opens in a new tab)
- Crypto lender Genesis to return $3 billion to customers in bankruptcy wind-downreuters.com · May 17, 2024 (opens in a new tab)
- commenced distributions to creditorsbusinesswire.com (opens in a new tab)
- Pryor Cashman Represents Ad Hoc Group of Dollar Lenders in Genesis Global Bankruptcy Reorganizationpryorcashman.com · August 16, 2024 (opens in a new tab)
- challenged the plan as favoring certain creditorslaw360.com (opens in a new tab)
- DOJ objected to the breadth of the plan's immunity provisionswsj.com (opens in a new tab)
- Attorney General James Secures Settlement Worth $2 Billion from ...ag.ny.gov · May 20, 2024 (opens in a new tab)
- banned Genesis from operating in New Yorkbusinesswire.com (opens in a new tab)
- Gemini Returns $2.2B Of Crypto From Genesis Ch. 11 - Law360law360.com · May 29, 2024 (opens in a new tab)
- Genesis Global Sues Digital Currency Group Seeking Billions (2)news.bloomberglaw.com · May 19, 2025 (opens in a new tab)
Case record
Plan confirmed ·
Public case facts. Searchable documents available. Full docket access requires Pro.
| Debtor(s) | Genesis Global Holdco, LLC (3 jointly administered entities) |
| Court | U.S. Bankruptcy Court, Southern District of New York |
| Case Number | 23-10063 |
| Petition Date | January 19, 2023 |
| Confirmation Date | May 31, 2024 |
| Judge | Hon. Sean H. Lane |
| Claims Agent | Kroll Restructuring Administration LLC |
Genesis Platform and DCG Ownership
The operating entities — Genesis Global Capital, LLC and Genesis Asia Pacific Pte. Ltd. — ran spot trading, lending and borrowing, derivatives, and custodial services for institutional and high-net-worth customers. Genesis Global Holdco was wholly owned by Digital Currency Group, Inc. Genesis Global Trading, Inc. and several other affiliates remained outside the debtor group.
As of September 30, 2022, the debtors reported hundreds of institutional trading counterparties. Genesis Custody Limited had approximately 90 customers as of December 31, 2022. The U.S. Trustee appointed an official committee of unsecured creditors on February 3, 2023, shortly after the petition date.
Crypto Contagion and the Path to Filing
The first-day declaration ties the filing directly to successive crypto-market shocks. The Luna/TerraUSD collapse in May 2022 destabilized lending counterparties, and the subsequent liquidation of Three Arrows Capital left Genesis Asia Pacific holding roughly $2.4 billion in loans to the failed hedge fund. Collateral recovered after foreclosure was worth approximately $1.2 billion.
The November 2022 collapse of FTX triggered a further liquidity crisis. Customers called approximately $827 million of loans, and the debtors faced what A. Derar Islim, who filed the first-day declaration, described as severe liquidity stress. Genesis Global Capital and Genesis Asia Pacific paused all lending and borrowing activity on November 16, 2022, roughly two months before the chapter 11 filing. The filing was presented as a value-maximizing restructuring intended to preserve assets, stabilize the estates, and maximize recoveries for creditors.
Genesis affiliates also carried direct FTX exposure: approximately $175 million in digital assets held at FTX and roughly $37 million in loans to Alameda Research, with an estimated $7 million loss on the Alameda positions.
Three Arrows, DCG Note, and FTX Exposure
The first-day declaration puts total liabilities at approximately $5.1 billion as of November 30, 2022, including intercompany balances. Several balance-sheet pressure points shaped the restructuring:
Three Arrows Capital exposure. Genesis Asia Pacific had extended roughly $2.4 billion in loans to Three Arrows Capital. Post-foreclosure collateral covered approximately half that amount. The debtors later executed a settlement with the joint liquidators of Three Arrows Capital, and the settlement effective date occurred on or about January 2, 2024.
DCG promissory note. Digital Currency Group issued Genesis Global Capital a $1.1 billion promissory note dated June 30, 2022, carrying a 10-year maturity and 1% fixed interest. The note became a central negotiation point in plan discussions between the debtors, their parent, and creditor constituencies.
FTX and Alameda exposure. The combined FTX-related exposure included digital assets on the exchange and loan positions to Alameda, totaling over $200 million in at-risk balances. The complexity of the FTX-related claims was enough to require targeted professional staffing: an application to retain M3 Advisory Partners disclosed that Alvarez & Marsal had an FTX-related conflict and needed to recuse itself from Alameda-related dispute work. M3 was retained for those matters at hourly rates ranging from $450 for analysts to $1,350 for managing partners.
Plan Iterations and DCG-Gemini Support Agreement
Genesis filed an initial chapter 11 plan on the petition date and revised it repeatedly through 2023 and 2024. The confirmation order recites plan and disclosure-statement iterations filed on January 20, June 13, October 24, November 4, November 7, November 17, November 27, and November 28 of 2023, plus multiple plan supplements between December 2023 and May 2024.
On November 29, 2023, the debtors filed a notice of plan support agreement. The agreement brought together Digital Currency Group, Gemini-related parties, the official committee of unsecured creditors, and the ad hoc lender group in a framework supporting the amended plan.
The amended joint chapter 11 plan organized recovery around separate treatment for claims against Genesis Global Holdco, Genesis Global Capital, and Genesis Asia Pacific. Implementation ran through wind-down debtors and a disbursing-agent structure, with claims reserves supporting distributions in cash or digital assets. Committee consent, ad hoc group consent, and in some circumstances Gemini consent were built into effective-date mechanics. Creditors in the ad hoc group of dollar lenders were projected to receive a 100% distribution on their claims.
Key professionals. The debtors retained Cleary Gottlieb Steen & Hamilton LLP as lead counsel and Alvarez & Marsal North America, LLC as financial advisor, both effective nunc pro tunc to the petition date. Moelis & Company LLC served as investment banker and capital markets advisor, Morrison Cohen LLP as special counsel, and Kobre & Kim LLP as special litigation counsel. The official committee of unsecured creditors retained White & Case LLP as counsel and Houlihan Lokey Capital, Inc. as investment banker, both nunc pro tunc to early February 2023. Kroll Restructuring Administration LLC was appointed as claims and noticing agent and separately retained as administrative advisor. The claims bar date was set for May 22, 2023.
Grayscale Trust Asset Sales
On February 15, 2024, the court entered an order authorizing sales, transfers, or redemptions of trust assets covering GBTC shares (the Grayscale Bitcoin Trust), ETHE (Grayscale Ethereum Trust), and ETCG (Grayscale Ethereum Classic Trust) interests. The debtors were authorized to use sale proceeds to purchase BTC or ETH directly, subject to notice and consent mechanics involving the committee and ad hoc group. Competing rights and interests attached to the proceeds rather than being adjudicated through the sale process, and the order authorized a post-emergence PA Officer and Wind-Down Oversight Committee to assume sale authority once the plan became effective.
Confirmation, NYAG Settlement, and Regulatory Actions
Judge Sean H. Lane signed the confirmation order on May 31, 2024. The Gemini/Genesis settlement effective date had already occurred on May 9, 2024, as reflected in a notice filed by the debtors, causing certain Gemini-specific plan exhibits to become null and void upon entry of the confirmation order. The court found that plan modifications tied to the Gemini settlement were not material enough to require re-solicitation. The confirmation order states that the plan's release, injunction, and exculpation provisions were presented in bold and conspicuous language.
Confirmation was contested by multiple parties. All objections were overruled except as otherwise resolved through the order and related settlements. DCG had challenged the plan as favoring certain creditors, and the DOJ objected to the breadth of the plan's immunity provisions. The Texas State Securities Board and Texas Department of Banking also filed objections to confirmation.
NYAG settlement. The New York Attorney General secured a settlement valued at approximately $2 billion from Genesis to compensate defrauded investors, with distributions to Gemini Earn program customers and other creditors folded into the plan framework. The bankruptcy court approved the settlement as part of the confirmation order on May 31, 2024, and the court's memorandum of decision addressed the settlement alongside plan confirmation. The settlement also banned Genesis from operating in New York.
SEC resolution. A separate stipulation and order between the wind-down debtors and the U.S. Securities and Exchange Commission was entered on April 7, 2025, resolving the SEC's claims against the estates in the post-confirmation phase. Following confirmation, the plan established a distribution framework to return approximately $3 billion to customers through cash and digital-asset distributions across the three debtor estates.
DIP Financing and Priming Relief
Genesis pursued targeted priming-consent relief rather than a conventional broad DIP facility for the entire debtor complex. In February 2023, Holdco sought authority to consent to the Cash Cloud DIP facility, and an order granting that consent was entered on February 10, 2023.
On August 16, 2023, the debtors filed a motion seeking authority to consent to priming of certain liens in connection with the FSP DIP facility. The court granted that motion on September 15, 2023. The motions addressed adequate protection, consent rights, and lien priority on specific property rather than estate-wide rescue financing.
Post-Confirmation Wind-Down and DCG Adversary
The plan became effective on August 2, 2024, and the wind-down debtors commenced distributions on that date. Subsequent distribution notices were filed in October 2024, December 2024, January 2025, and October 2025, indicating ongoing creditor payment activity through the wind-down. Gemini returned approximately $2.18 billion in digital assets to users of the Gemini Earn program as part of the settlement distributions.
Post-confirmation litigation between the wind-down debtors and DCG has continued. Genesis Global Capital sued Digital Currency Group seeking to recover billions in assets and preferential transfers, alleging that DCG insiders engaged in fraud and mismanagement while Genesis was insolvent. DCG filed its own adversary complaint, and the wind-down debtors have moved to dismiss that action. The claims objection process also remains active, with the court granting the wind-down debtors' second extension of the deadline to object to claims in February 2026.
Key Timeline
| Date | Milestone |
|---|---|
| January 19, 2023 | Genesis Global Holdco, Genesis Global Capital, and Genesis Asia Pacific filed chapter 11 petitions |
| January 26, 2023 | Court authorized Kroll Restructuring Administration LLC as claims agent |
| February 3, 2023 | U.S. Trustee appointed official committee of unsecured creditors |
| February 10, 2023 | Court entered order authorizing consent to Cash Cloud DIP |
| April 4, 2023 | Court established claims bar date of May 22, 2023 |
| September 15, 2023 | Court granted FSP priming-consent motion |
| November 29, 2023 | Debtors filed notice of plan support agreement |
| January 2, 2024 | Three Arrows Capital settlement effective date |
| February 15, 2024 | Court entered trust-asset sale/redemption order covering GBTC, ETHE, and ETCG |
| May 9, 2024 | Gemini/Genesis settlement effective date |
| May 17, 2024 | Court approved NYAG $2 billion settlement alongside plan confirmation |
| May 31, 2024 | Court signed confirmation order |
| August 2, 2024 | Plan effective date; distributions commenced |
| April 7, 2025 | Court entered stipulation with SEC resolving commission claims |
Frequently Asked Questions
What happened to Genesis Global?
Genesis Global Holdco, LLC and its operating affiliates filed chapter 11 on January 19, 2023, after crypto-market contagion from the Luna/TerraUSD collapse, Three Arrows Capital liquidation, and FTX failure drained liquidity from the institutional lending platform. The court confirmed a wind-down plan on May 31, 2024, and the plan became effective on August 2, 2024.
How much are Genesis creditors recovering?
The confirmed plan established a framework to return approximately $3 billion to customers through distributions of cash and digital assets across the three debtor estates. Creditors in the ad hoc group of dollar lenders were projected to receive a 100% distribution on their claims. Multiple subsequent distribution rounds have occurred since the plan became effective.
What caused the Genesis bankruptcy?
The first-day declaration identifies a sequence of crypto-market failures: the Luna/TerraUSD collapse in May 2022, the liquidation of Three Arrows Capital (which left Genesis Asia Pacific with roughly $2.4 billion in impaired loans), and the November 2022 collapse of FTX, which triggered approximately $827 million in loan calls and forced the debtors to pause all lending activity.
What was the Gemini settlement?
The Gemini/Genesis settlement resolved disputes that had been central to the plan structure. The settlement reached its effective date on May 9, 2024, before the confirmation order was entered on May 31, 2024. Gemini returned approximately $2.18 billion in digital assets to Gemini Earn program users as part of the settlement distributions.
What was the NYAG settlement?
The New York Attorney General secured a settlement valued at approximately $2 billion from Genesis to compensate defrauded investors. The bankruptcy court approved the settlement as part of the confirmation order on May 31, 2024. The settlement also banned Genesis from operating in New York.
Who is the claims agent for Genesis Global Holdco?
Kroll Restructuring Administration LLC serves as the claims and noticing agent. The firm maintains the official claims register and distributes case notifications to creditors and parties in interest.
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This article was researched and written with AI assistance, using court filings, public records, and news sources. AI-generated content can contain errors. Verify all information against primary sources before relying on it. This is not legal or financial advice. See the disclaimer.