Bankrupt Crypto Lender Genesis Global Capital Seeks Approval to Sell $1.6 Billion in Trust Assets
Genesis Global Capital, a bankrupt crypto lender, has filed a motion with the U.S. Bankruptcy Court in New York seeking authorization to sell approximately $1.6 billion in trust assets. The assets include shares of Grayscale Bitcoin Trust worth about $1.4 billion, shares of Grayscale Ethereum Trust worth about $165 million, and shares of Grayscale Ethereum Classic Trust worth about $38 million.
Separate Motion Filed to Expedite Sale Hearing
In addition to the asset sale motion, Genesis filed a separate motion to expedite the relevant deadlines so that the sale hearing can take place at the next bankruptcy court hearing on February 8.
Disputed Ownership of Additional Shares
Genesis is also seeking legal ownership of 31,180,804 additional shares (worth about $1.2 billion) that were pledged to Gemini but never transferred. The ownership of these shares is currently an unsettled matter before the court.
Gemini Supports the Filing
Gemini, in an announcement on its website, called the filing an important step forward following the approval of Grayscale Bitcoin Trust as an exchange-traded product on January 10th.
Fine Settlement with SEC
This week, Genesis agreed to pay a $21 million fine to the SEC from remaining funds after bankruptcy to settle a lawsuit regarding its operation of the Gemini Earn program.
Hot Take: Genesis Global Capital’s Asset Sale Aims to Settle Debts Amid Legal Disputes
Bankrupt crypto lender Genesis Global Capital has filed a motion seeking approval to sell approximately $1.6 billion in trust assets, including shares of Grayscale Bitcoin Trust. The company is also trying to claim additional shares currently in dispute. Gemini, which received collateral from Genesis, supports the filing. Genesis recently agreed to pay a fine to the SEC as part of a settlement. The asset sale aims to settle debts and resolve legal disputes surrounding the company’s operations.
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