Genesis Seeks Court Approval for Sales of $1.4B Worth GBTC Shares

• The business requested a shorter deadline in order to have the sale motion addressed.
• Genesis settled the SEC’s complaint by agreeing to pay a $21M fine earlier this week.

Genesis Global Capital, a defunct cryptocurrency lender, has filed a fresh motion with the United States Bankruptcy Court for the Southern District of New York, requesting permission to liquidate almost $1.4 billion worth of trust assets.

Genesis, a division of the Digital Currency Group (DCG), reportedly has $1.4 billion in Grayscale Bitcoin Trust, $165M in Grayscale Ethereum Trust, and $38M in Grayscale Ethereum Classic Trust shares among its holdings, as stated in the filing.

Shorter Deadline Requested

Separately, the business requested a shorter deadline in order to have the sale motion addressed at the next bankruptcy court hearing on Thursday, February 8. These GBTC shares, along with others acquired during Three Arrows Capital’s (3AC) bankruptcy, were among the initial collateral Genesis sent to Gemini as part of the latter’s Gemini Earn program.

Also, the business is attempting to get the 31,180,804 extra shares (worth about $1.2 billion) back from Gemini, which were promised but never transferred. The ownership of these shares is still up in the air in court.

Following the recent approval of the Grayscale Bitcoin Trust (GBTC) as an exchange-traded fund (ETF), Gemini characterized the submission in a statement on its website as a significant step forward.

Genesis settled the SEC’s complaint against the firm over the operation of the Gemini Earn program earlier this week by agreeing to pay a $21 million fine. The fee will be paid out of any remaining funds after the bankruptcy.

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