Genesis asks bankruptcy court for approval to sell $1.4 billion in GBTC stock
Bankrupt cryptocurrency lender Genesis Global Capital has filed a new motion with the U.S. Bankruptcy Court for the Southern District of New York seeking approval to sell approximately $1.6 billion in trust assets.
According to the document, assets held by Genesis, a subsidiary of Digital Currency Group, include approximately $1.4 billion worth of Grayscale Bitcoin Trust shares, approximately $165 million worth of Grayscale Ethereum Trust shares, and approximately $38 million worth of Grayscale Bitcoin Trust shares. Grayscale Ethereum Classic Trust stocks are included. million.
The company also filed a separate motion to shorten the relevant deadlines so that the sale application can be heard at the Bankruptcy Court’s next hearing on Thursday, February 8.
The GBTC shares in question consisted of early collateral Genesis transferred to Gemini as part of the Gemini Earn program, along with some shares acquired through the bankruptcy of Three Arrows Capital. The company is also seeking to legally claim an additional 31,180,804 shares (worth approximately $1.2 billion) that were promised but not transferred to Gemini. Ownership of the shares is an issue currently unresolved in the courts.
In an announcement on its website, Gemini said: “…this is a significant step forward following the approval of the Grayscale Bitcoin Trust (GBTC) as an exchange-traded product (ETP) on January 10.”
Earlier this week, Genesis agreed to pay a $21 million fine to the SEC from funds left over from its bankruptcy to settle a lawsuit brought against the company for operating the Gemini Earn program.
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