Bankrupt Genesis Global Holdco LLC Approved to Roll Out Grayscale Bitcoin Trust (GBTC)
Bankrupt crypto firm Genesis Global Holdco LLC has received court approval to launch its Grayscale Bitcoin Trust (GBTC). This decision allows Genesis to sell its $1.6 billion worth of GBTC, providing a means for the company to repay its creditors. Previously, Genesis had an earning program in partnership with Gemini that involved lending assets and providing profit to investors. However, Genesis failed to fulfill its obligations, leading to a lawsuit from Gemini over the GBTC shares. While Gemini requested control over the shares, the court ruled in favor of Genesis, allowing them to convert the shares into Bitcoin or cash and repay their clients.
Genesis vs. Gemini: Court Ruling
Gemini’s request for control over the GBTC shares was not accepted by the bankruptcy court. As a result, Genesis has been granted permission to sell the trust assets and repay its creditors. The news of the GBTC sales may have an impact on Bitcoin’s price momentum, potentially derailing its positive trend. The previous outflow saga related to Grayscale caused a market-wide depression during the spot Bitcoin ETF debut. Currently, Bitcoin is trading at $51,688.40 with a 6.35% increase in the last 24 hours.
By
By
By
By