Genesis Global Receives Approval to Sell Grayscale Bitcoin Trust Shares
Genesis Global has been granted permission by the bankruptcy court to sell approximately 35 million shares of Grayscale Bitcoin Trust, valued at around $1.3 billion. The decision was made by U.S. Bankruptcy Judge Sean Lane during a court hearing in New York.
This approval allows Genesis to monetize its holdings of Grayscale Bitcoin Trust, Grayscale Ethereum Trust, and Grayscale Ethereum Classic Trust.
Genesis Plans to Sell GBTC and GET Shares
In addition to the 35 million GBTC shares, Genesis intends to sell over 11 million shares in two Grayscale Ethereum Trusts, with a combined value exceeding $200 million. This brings the total shares in Grayscale Bitcoin Trust, Grayscale Ethereum Trust, and Grayscale Ethereum Classic Trust to approximately $1.6 billion.
Digital Currency Group (DCG), the parent company of Genesis, attempted to delay the sale until after the bankruptcy court decides on the subsidiary’s debt repayment plan. However, Judge Sean Lane ruled in favor of Genesis, stating that the sales would be conducted over time with the assistance of a broker to prevent any adverse effects on prices.
SEC and NY Attorney General Settlement
Genesis is also proceeding with its liquidation plan, which involves shutting down the company and repaying customers in cash or cryptocurrency. Settlements have been reached with the U.S. SEC and New York Attorney General Letitia James, resolving their objections to Genesis’ bankruptcy plan.
Under the settlements, the SEC will receive a $21 million fine if there are surplus funds after customer repayments. Any recovered funds from the bankruptcy proceedings will be used by the New York Attorney General to assist defrauded creditors.
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