- Genesis seeks court approval to sell $1.6 billion Grayscale shares.
- The assets include GBTC, Ethereum, and Ethereum Classic Trust shares.
- Genesis’ move coincides with recent actions by FTX that caused BTC to crash.
Genesis Global Capital, a troubled crypto lender, has filed a pivotal motion with a U.S. bankruptcy court seeking approval to sell approximately $1.6 billion in trust assets. The bankrupt firm filed the motion with a U.S. bankruptcy court in the Southern District of New York.
Chinese reporter Colin Wu recently called attention to the development on X. Per the court filing, the planned liquidation encompasses Grayscale Bitcoin Trust (GBTC) shares valued at around $1.4 billion.
Furthermore, Genesis revealed that among the assets it is seeking approval to liquidate are shares of Grayscale Ethereum Trust, valued at around $165 million. The firm’s Grayscale Ethereum Classic Trust, valued at about $38 million, is part of the planned liquidation.
Meanwhile, the company’s filing includes a separate motion to expedite relevant deadlines, aiming to present the sale motion at the upcoming bankruptcy court hearing scheduled for Thursday, February 8.
Notably, the GBTC shares under scrutiny constituted the initial collateral transferred by Genesis to Gemini within the latter company’s Gemini Earn program. These shares were accompanied by some acquired through Three Arrows Capital’s bankruptcy.
Furthermore, the company is pursuing legal ownership of 31,180,804 additional shares (valued at about $1.2 billion) pledged to Gemini but never transferred. The ownership of these shares is presently an unresolved matter before the court.
Responding to the developments, Gemini characterized the filing as a pivotal stride forward, especially following the recent approval of GBTC as an exchange-traded product (ETP) on January 10.
Genesis’s decision to liquidate approximately $1.6 billion from Grayscale shares coincides with recent actions by FTX, which also liquidated similar Grayscale trusts in the past weeks. This combined activity has contributed to significant selling pressure in the crypto market. As a result, Bitcoin experienced a downturn, plummeting from $48,800 to $38,600.
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