Genesis Global Capital has filed in the US bankruptcy court to sell its Grayscale Bitcoin, Ethereum and Ethereum Classic Trust holdings, worth a total of about $1.6 billion. The purpose of this strategic liquidation is to maximize creditor repayments amid potential market volatility following the recent SEC settlement.
Crypto lending firm Genesis Global Capital, currently under bankruptcy proceedings, has made a significant milestone step By requesting permission from the US Bankruptcy Court in the Southern District of New York to liquidate its stakes in Grayscale’s Bitcoin Trust (GBTC), Ethereum Trust (ETHE), and Ethereum Classic Trust (ETCG), whose assets collectively have a value of approximately 1.6 Is billion dollars. , The request is part of Genesis’ broader strategy to maximize funds available for distribution to creditors amid potential fluctuations in the prices of the underlying assets.
The assets targeted for liquidation include approximately $1.4 billion in GBTC shares, $165 million in ETHE shares, and $38 million in ETCG shares. Genesis has stressed the urgency of obtaining approval for the asset sale to mitigate the risks associated with price volatility in the cryptocurrency market and to facilitate timely distribution to creditors.
In addition to seeking the sale of these trust assets, Genesis also aims to reclaim legal ownership of an additional 31,180,804 shares, worth approximately $1.2 billion, that were pledged. Gemini But the transfer never happened. This matter is currently pending in the court. These shares were initially pledged by Genesis to Gemini as collateral for the Gemini Earn program.
Genesis’ request for liquidation comes after the firm reached an agreement with the US Securities and Exchange Commission (SEC) to settle a lawsuit related to the operation of the Gemini Earn program. As part of the settlement, Genesis agreed to pay a $21 million fine from any remaining funds after the bankruptcy process ends. The settlement aims to resolve the SEC’s claims and allows Genesis to focus on maximizing returns for its creditors without the burden of lengthy litigation.
An upcoming hearing on the asset liquidation proposal is scheduled for February 8, highlighting Genesis’ intention to expedite the process amid ongoing challenges. This strategic liquidation effort, especially in light of GBTC’s recent conversion to a spot Bitcoin ETF, which allows for the redemption of shares in cash, is an important step in Genesis’s bankruptcy proceedings and efforts to resolve its financial obligations. Is.
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