Genesis Global Capital Seeks Court Approval for Extensive Sale of Holdings
Genesis Global Capital, a crypto lender currently undergoing bankruptcy proceedings, has formally requested authorization from the U.S. Bankruptcy Court to proceed with the sale of its holdings. The company has submitted a motion seeking approval to sell trust assets valued at approximately $1.6 billion.
Trust Assets Include Grayscale Bitcoin Trust Shares
The trust assets consist of around $1.4 billion worth of Grayscale Bitcoin Trust shares, as well as $200 million in shares of Grayscale’s Ethereum and Ethereum Classic trusts. Genesis Global Capital believes that selling these assets is crucial for optimizing the estate value and effectively managing their assets.
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Urgency and Expedited Proceeding
The crypto lender has requested an expedited proceeding, aiming to synchronize it with the court’s scheduled hearing on February 8. This highlights the urgency of the request.
Liquidation as a Strategic Move
Genesis’ decision to liquidate these assets is a strategic move resulting from its previous involvement in the cryptocurrency lending sector. It includes collateral transferred to Gemini through the Gemini Earn program and the acquisition of assets from the bankruptcy of Three Arrows Capital.
Resolution of SEC Lawsuit
Last week, Genesis reached an agreement to pay $21 million to the U.S. Securities and Exchange Commission (SEC) as a resolution to a lawsuit filed by the regulator. The lawsuit alleged that Gemini and Genesis had offered unregistered securities through the Gemini Earn program.
FTX Seeks Buyers for Stake in AI Startup
In a separate development, FTX is looking for buyers for an 8% stake in Anthropic Holdings, an AI startup valued at a potential $1.4 billion. The proceeds from this sale will be used to facilitate repayments to FTX customers and creditors.
Hot Take: Genesis Global Capital Seeks Court Approval for Extensive Sale of Holdings
Genesis Global Capital has formally requested authorization from the U.S. Bankruptcy Court to proceed with an extensive sale of its holdings. The company is seeking approval to sell trust assets valued at approximately $1.6 billion, including Grayscale Bitcoin Trust shares and shares of Grayscale’s Ethereum and Ethereum Classic trusts. This strategic move aims to optimize the estate value and effectively manage their assets. Additionally, Genesis has resolved a lawsuit with the SEC by agreeing to pay $21 million as a resolution. In another development, FTX is seeking buyers for a stake in an AI startup to facilitate repayments to its customers and creditors.
