News

Genesis Global Capital Seeks Court Approval to Sell $1.6 Billion In Assets

Key Points:

  • Genesis Global Capital, a bankrupt crypto lender, files for permission to liquidate assets worth $1.6 billion.
  • Genesis urges an expedited process to sell assets, aiming to maximize creditor funds amidst potential price fluctuations in underlying assets like Bitcoin and Ethereum.
Genesis Global Capital, the bankrupt crypto lending firm, has filed a motion with the United States Bankruptcy Court in the Southern District of New York, seeking permission to liquidate assets valued at approximately $1.6 billion.
Genesis Global Capital Seeks Court Approval to Sell $1.6 Billion In Assets 2

Genesis Global Capital Seeks Swift Approval for $1.6 Billion Crypto Asset Liquidation

The assets include shares from the Grayscale Bitcoin Trust (GBTC), the Grayscale Ethereum Trust (ETHE), and the Grayscale Ethereum Classic Trust (ETCG).

In the filing, Genesis, a subsidiary of the Digital Currency Group, detailed its request to sell about $1.4 billion in GBTC shares, $165 million in ETHE shares, and $38 million in ETCG shares. The urgency to expedite the process was emphasized to maximize funds for creditor distribution amid potential fluctuations in underlying asset prices, such as Bitcoin, Ethereum, and Ethereum Classic.

Genesis Global Capital also aims to claim 31,180,804 additional shares (valued at about $1.2 billion) pledged to Gemini but never transferred, a matter pending court resolution. These shares were part of the initial collateral transferred to Gemini for the Gemini Earn program.

SEC-Approved Genesis Plans Strategic Liquidation After Settling Lawsuit

In response to the recent SEC approval for GBTC’s conversion to a spot Bitcoin ETF, Genesis Global Capital is looking to redeem shares in cash. Cointelegraph reported a significant investor exodus from GBTC shares post-conversion.

The motion additionally disclosed Genesis’s settlement of an SEC lawsuit over the defunct Gemini Earn lending program. The liquidation plan, set to repay customers in cash or cryptocurrency based on their deposited currencies, aligns with Genesis’s strategic move in the aftermath of the November 2023 crypto market crash.

A hearing for the asset liquidation motion is requested on February 8, with the aim of expediting the process amidst ongoing litigation involving Genesis Global Capital, Gemini, and parent company Digital Currency Group.

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

Recent Posts

Qubetics, Cosmos, and Chainlink: Why These Cryptos Are Your Best Bet for November 2024

Discover why Qubetics, Cosmos, and Chainlink are the best cryptos to buy in November 2024.…

3 hours ago

Best Cryptos to Buy in December 2024: Qubetics Presale Goes Ballistic as Ethereum and Quant Look to Build Momentum

Best Cryptos to Buy in December 2024: Qubetics ($TICS) presale explodes, Ethereum (ETH) eyes a…

6 hours ago

USDC and CCTP to launch on Aptos, with Stripe adding Aptos support in crypto products

Palo Alto, California, 21st November 2024, Chainwire

8 hours ago

Best Cryptos to Buy: Qubetics Set to Rise, Bitcoin Knocks at $100k Milestone, Avalanche to Release 1.67M Tokens

Best Cryptos to Buy: Qubetics presale rockets ahead, Bitcoin nears $100k, and Avalanche prepares to…

8 hours ago

Ike Goes Live on Mainnet: Unlocking Liquid Staking on Aleph Zero

London, United Kingdom, 21st November 2024, Chainwire

9 hours ago

Native USDC on Aptos Coming Soon to Boost DeFi and P2P Transactions

The move will see developers utilize USDC on Aptos in creating dApps on a wide…

9 hours ago

This website uses cookies.