Connect with us

Hi, what are you looking for?


Genesis Seeks Green Light from Bankruptcy Court for $1.4 Billion GBTC Share Sale

Crypto lender Genesis Global Capital, currently undergoing bankruptcy proceedings, has requested permission to sell trust assets worth approximately $1.6 billion.

In a motion filed with the U.S. Bankruptcy Court in the Southern District of New York, the firm sought approval to sell assets held by Genesis, a subsidiary of the Digital Currency Group.

The assets include shares of Grayscale Bitcoin Trust (GBTC) valued at around $1.4 billion, shares of Grayscale Ethereum Trust valued at about $165 million, and shares of Grayscale Ethereum Classic Trust valued at approximately $38 million.

Genesis Asks Court to Expedite Deadlines

In a separate motion, Genesis requested the court to expedite the relevant deadlines, aiming for the sale motion to be heard at the upcoming hearing on Thursday, February 8.

The GBTC shares in question were initially pledged as collateral by Genesis to Gemini for the Gemini Earn program.

Additionally, Genesis is seeking legal ownership of 31,180,804 additional shares (worth around $1.2 billion) that were pledged to Gemini but not transferred.

The ownership of these shares is currently a matter pending before the court.

Gemini, in a statement on its website, regarded the filing as a significant step forward, particularly following the approval of GBTC as an exchange-traded product (ETP) on January 10th.

Earlier this week, Genesis reached an agreement with the U.S. Securities and Exchange Commission (SEC) to pay a $21 million fine using any remaining funds after the bankruptcy process.

This settlement resolves the SEC’s lawsuit against Genesis concerning the operation of the Gemini Earn program.

SEC Settlement Provides Numerous Benefits to GGC

The settlement will provide several benefits to GGC’s estates, including the resolution of the SEC’s Civil Action Claim filed in these Chapter 11 Cases.

By reaching this settlement, Genesis would eliminate the risks, expenses, and uncertainty associated with protracted litigation against the SEC.

The SEC filed its lawsuit against Genesis and Gemini in January 2023, focusing on the period between February 2021 and November 2022.

The commission alleged that both firms violated U.S. securities laws through their crypto lending program.

As a consequence of the legal proceedings, Genesis suspended withdrawals on its platform in November 2022 and subsequently filed for bankruptcy in January 2023.

More recently, bankrupt cryptocurrency exchange FTX also asked for approval to sell its 8% stake in AI startup Anthropic Holdings.

The motion, filed by FTX’s current CEO, John Ray III, requests permission to sell the stake and proposes two possible procedures, including an auction or a private sale.

Anthropic Holdings achieved a reported valuation of up to $18 billion in December 2023, indicating that FTX’s 7.84% stake could be worth approximately $1.4 billion.

This value has sparked hope among victims of the FTX collapse, as FTX anticipates having sufficient funds to fully repay all customer and creditor claims.

The post Genesis Seeks Green Light from Bankruptcy Court for $1.4 Billion GBTC Share Sale appeared first on Cryptonews.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



Get your daily, bite-sized digest of blockchain and crypto news – investigating the stories flying under the radar of today’s news. In today’s crypto...


The amount of Bitcoin (BTC) held on Coinbase has plummeted by almost $1 billion worth of assets as whales move their holdings. New data...


Mumbai, the bustling financial hub of India, has introduced a metaverse initiative aimed at showcasing its latest and upcoming city-wide infrastructure megaprojects. Dubbed the Mumbai...


BlackRock, the world’s largest asset manager, has intensified its media advertising campaign for its recently launched iShares spot Bitcoin exchange-traded fund (ETF), framing the...


In an exclusive, gaming-focused interview with Cryptonews, the BLOCKLORDS game CEO David Johansson talked about the indestructible link between crypto and gaming. He told...


A recent study by a team of researchers from Europe and Asia explored the possibility of predicting positive outcomes in crypto market trading using...

You May Also Like

Financial Advisors


Financial Advisors


Financial Advisors

The humongous outbreak of the dreaded coronavirus has brought about a groundbreaking change in what the world perceived as ‘normal’. With an estimated 280,391,189...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2024 Respect Investment. All Rights Reserved.