Genesis Global Capital Requests Permission to Sell Trust Assets
Crypto lender Genesis Global Capital, currently undergoing bankruptcy proceedings, has filed a motion with the U.S. Bankruptcy Court in the Southern District of New York to request permission to sell trust assets worth approximately $1.6 billion. The assets include shares of Grayscale Bitcoin Trust (GBTC) valued at around $1.4 billion, shares of Grayscale Ethereum Trust valued at about $165 million, and shares of Grayscale Ethereum Classic Trust valued at approximately $38 million.
Genesis Asks Court to Expedite Deadlines
In a separate motion, Genesis has also requested the court to expedite the relevant deadlines, aiming for the sale motion to be heard at the upcoming hearing on Thursday, February 8. The GBTC shares in question were initially pledged as collateral by Genesis to Gemini for the Gemini Earn program. Additionally, Genesis is seeking legal ownership of 31,180,804 additional shares (worth around $1.2 billion) that were pledged to Gemini but not transferred.
SEC Settlement Provides Numerous Benefits to GGC
The recent settlement between Genesis and the U.S. Securities and Exchange Commission (SEC), in which Genesis agreed to pay a $21 million fine using any remaining funds after the bankruptcy process, provides several benefits to GGC’s estates. This settlement resolves the SEC’s lawsuit against Genesis concerning the operation of the Gemini Earn program. By reaching this settlement, Genesis eliminates the risks, expenses, and uncertainty associated with protracted litigation against the SEC.
FTX Requests Approval to Sell Stake in AI Startup
Bankrupt cryptocurrency exchange FTX has also filed a motion to seek approval from the bankruptcy court to sell its 8% stake in AI startup Anthropic Holdings. The stake is valued at approximately $1.4 billion, as Anthropic Holdings achieved a reported valuation of up to $18 billion in December 2023. This potential value has given hope to victims of the FTX collapse, as FTX anticipates having sufficient funds to fully repay all customer and creditor claims.
Hot Take: Genesis Seeks Green Light for GBTC Share Sale
Genesis Global Capital has requested permission from the bankruptcy court to sell trust assets worth $1.6 billion, including shares of Grayscale Bitcoin Trust (GBTC). The company is also seeking expedited deadlines for the sale motion. The recent settlement with the SEC provides several benefits to GGC’s estates and eliminates the risks of litigation. In a similar move, bankrupt exchange FTX is seeking approval to sell its stake in AI startup Anthropic Holdings. The potential value of the stake has sparked hope among FTX collapse victims for full repayment of their claims.
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