We aim to update this page on Fridays. This provides us with time to review updates and offer information as relevant. For the latest confirmed information, we recommend that you check this page prior to contacting us directly.

On November 16th, 2022, in consultation with their professional financial advisors and counsel, Genesis took the decision to temporarily suspend redemptions and new loan originations in their lending business.

On January 19th, 2023, after two months of negotiations and numerous proposals, Genesis voluntarily filed for Chapter 11 bankruptcy protection. This was an important step for the recovery of funds.

On February 6th, 2023, Genesis announced to the court that they had reached an agreement in principle with and amongst its creditors, and on February 10th, this was publicly filed as a Term Sheet.

On June 13th, 2023, Genesis filed an amended proposed Plan and Disclosure Statement.

On August 28th, 2023, Genesis released an announcement that an agreement in principle had been reached among the Debtors, the UCC, and DCG following the end of mediation.

On October 24th, 2023 the Debtors’ filed a further revised version of their Amended Joint Chapter 11 Plan and Amended Disclosure Statement.

On November 28th, 2023, the Amended Disclosure Statement was approved, and the official solicitation and voting period for the Plan began. It will continue through early January.
​
On January 25th, 2024 Genesis announced that creditors accepted Genesis's Chapter 11 Plan.

On February 26th, 2024 the Confirmation Hearing started and closing arguments concluded on March 22nd, 2024.

Since the closing arguments concluded, Judge Lane has taken proposed findings of fact and conclusions of law under advisement.

At Tuesday’s hearing, Judge Lane provided a status update with respect to the Plan’s confirmation that the parties of interest “should not read anything” into its delay as decisions with such complexity, like this, take time to be considered and written properly.

With that, we continue to expect a decision on Plan confirmation before the end of the month.

During this hearing, Judge Lane also orally approved the Gemini Settlement Agreement, which authorizes Gemini to use their GTBC collateral for distributions. This is not dependent on the confirmation of the Plan, which means the distribution timelines could be narrowly apart.

While not directly involved in this agreement, we view it as a positive step forward in the proceedings that brings all creditors closer to a confirmed Plan and distribution timelines.

We will provide the next update on April 26th.

On January 19th, 2023, Genesis voluntarily filed for Chapter 11 bankruptcy protection. Generally speaking, Chapter 11 cases can take anywhere from 6 - 18 months to complete. Once the Plan is confirmed we will be able to better inform you of the expected distribution values, timing, and schedule.

On January 25th, Genesis announced that creditors accepted Genesis's Chapter 11 Plan.
​
On February 26th, 2024 the Confirmation Hearing started and closing arguments concluded on March 22nd, 2024.

Judge Lane has since taken the matter under advisement to consider the arguments and evidence before issuing a decision.

A decision on Plan confirmation is expected in April, with more details to come.

Once confirmed, Genesis can begin implementing the Plan and distributions can begin. At this point, we’ll also be able to provide exact recovery rates and inform you of distribution mechanics on Donut.
​​
This timeline remains subject to change.

When the time for withdrawals comes, we will email you with instructions on how to prepare your account and initiate withdrawals. Should distributions occur in tranches you'll likely receive a significant initial portion and the remainder over time.

According to the Plan, the estimated recovery is 61-100%. If DCG pays its outstanding obligations to Genesis, recoveries have the prospect of reaching 100%. At current market prices, Donut user recovery rates are expected to settle from 90-100% but remain subject to change as they are dependent on the entry of the Confirmation Order.
​
It's important to note that this range is subject to change.

The Master Proof of Claim was timely and properly filed on behalf of all Donut users. No action is required on your part.

When Genesis suspended redemptions, it had a significant and negative impact on Donut. Sadly, we feel we have no other alternative than to take our apron off and announce the discontinuation of Donut. To learn more about the details of this decision click here.

The funds recovered from Genesis will be made available to you for withdrawal in full. Once the Plan is confirmed, we will be able to better inform you of the expected distribution values, timing, and schedule. We’ll ensure that you have adequate support throughout the recovery process once distributions begin.

We have migrated user accounts to a new web dashboard. Log in here.

When a company files for Chapter 11 bankruptcy, it asks the court for protection from its creditors while it reorganizes its business and its debts. The goal of a Chapter 11 bankruptcy is for the company to come up with a plan to repay its creditors as much as possible. Under Chapter 11, the company's management remains in control of the business, but it operates under the supervision of the court and a trustee. The company will file a plan of reorganization that outlines how it plans to repay its creditors, and the creditors will have a chance to vote on the plan. If the plan is approved by the court and a majority of the creditors, the company will be able to emerge from bankruptcy and continue operating.

Genesis Global Holdco LLC, the parent company Genesis Global Capital, and its subsidiaries Genesis Asia Pacific Pte. Ltd and Genesis Global Capital, LLC filed a trio of voluntary petitions with the bankruptcy court. All three fall under the umbrella of Digital Currency Group. Genesis’s derivatives and spot trading, broker dealer, and custody businesses remain active and will be assessed to understand the value that can be contributed from their trading arm to facilitate the obligations of Genesis.

Despite not being selected to the Unsecured Creditor Committee, we trust that those selected will fulfill their role in maximizing the recovery for creditors.

To fill the $1.1 billion hole in Genesis’ balance sheet from the 3AC default, DCG entered into a 10-year promissory note with Genesis at an interest rate of 1% – due in 2032. To induce new capital from lenders, Genesis’s team and balance sheet represented this Promissory Note as a Current Asset, able to be quickly converted to cash within 12 months or less. You can think of this instrument as a long-term IOU, that was represented as a short-term IOU on Genesis’ balance sheet. Today, Genesis, DCG, and their advisors deny that this Promissory note is a “Current Asset.” Current assets on a balance sheet include cash, cash equivalents, short-term investments, and other assets that can be quickly converted to cash—within 12 months or less.

Overcollateralization seeks to protect lenders from borrower default. If at any point during the loan, it is no longer overcollateralized, the borrower will be margin called and asked to put up more collateral. If the borrower fails to, the collateral is liquidated. So long as the loans are performing, lenders are unable to liquidate a borrower’s collateral. All the lender (Genesis) can do is wait until the loan matures. This is a liquidity issue with duration mismatch, and what Genesis faces today.

All assets have been safely withdrawn from other lending partners and made available for withdrawal.

Yes. All assets with our non-Genesis lending partners are now available for withdrawal. To withdraw these funds, please log in to your web dashboard.

For members of the Save plan, 5% of your total balance is available to withdraw. For members of the Build plan, 14.5% of your balance is available to withdraw. These percentages represent the amount of funds allocated to non-Genesis partners per plan. The remaining funds are held 1:1 at Genesis, and access to them will adhere to Genesis’ resolution plan.

The Save and Build plans have different compositions and lenders. Each plan contains the relevant lender information within the app.

Your current balance, after withdrawing the full value of your funds from other lending partners, is with Genesis in its entirety, who continues to prevent withdrawals. Donut is not holding any of your funds nor preventing withdrawals. Deposits on Donut are put to work right away. They are passed directly to lending partners and entered into loans. When you initiate a withdrawal, we call those funds back from lending partners to process your withdrawal.

Genesis is our principal lending partner at Donut. By pausing redemptions, Donut is unable to withdraw user funds from Genesis.

All account services on Donut are temporarily paused, with the exception of withdrawals of non-Genesis funds.

No.

Your account continues to be protected with 2FA, your PIN, and the AES-256 data security standard.

If you have not canceled your Direct Deposit with your employer, it will still arrive to Donut as expected. If your Direct Deposit is received by Donut, please reach out to us at [email protected] and we can provide options.

We aim to update this page on Fridays. This provides us with time to review updates and offer information as relevant. For the latest confirmed information, we recommend that you check this page prior to contacting us directly.