Genesis GBTC Shares Were Sold To Buy 32,041 Bitcoin

Key Points:

• Genesis Global Capital converts Grayscale Bitcoin Trust shares into 32,041 Bitcoin to repay customers during bankruptcy.
• Judge Sean Lane approved the sale of Genesis GBTC shares, which will be paid to Gemini Earn creditors as part of an SEC settlement.
• Digital Currency Group faces legal action over alleged fraud linked to Genesis and Gemini exchange.

Genesis Global Capital announced on Friday the completion of its monetization of Grayscale Bitcoin Trust (GBTC) shares, utilizing the proceeds to purchase 32,041 Bitcoin. This move comes as the bankrupt crypto lender seeks to fulfill its obligations to customers.

Genesis GBTC Shares Are Converted to Bitcoin Amid Bankruptcy

According to Bloomberg, Genesis finalized the monetization of nearly 36 million GBTC shares as of April 2, following approval from Judge Sean Lane in February. The sale of Genesis GBTC shares was executed on April 2, as stated in the documents.

The New York bankruptcy court had granted Genesis permission in February to sell the GBTC shares, along with additional shares in two Grayscale Ethereum trusts, valued collectively at $1.6 billion at the time. With Bitcoin’s current price hovering around $67,800, the purchased Bitcoin is now valued at approximately $2.2 billion.

Genesis plans to allocate these Bitcoin tokens to its Gemini Earn creditors as part of its repayment strategy. This plan stems from Genesis’s $21 million settlement with the SEC, which addressed allegations of offering unregistered securities through the Gemini Earn program.

Legal Trouble Brews for Digital Currency Group Over Alleged Fraud

The successful sale of Genesis GBTC shares underscores its commitment to meeting its financial obligations and navigating through bankruptcy proceedings. It reflects the company’s determination to fulfill its commitments to customers while addressing regulatory challenges.

In related news, Digital Currency Group (DCG) faces a lawsuit filed by New York Attorney General Letitia James, alleging investor fraud and mismanagement. The lawsuit implicates DCG and its CEO, Barry Silbert, regarding Genesis’s actions and its association with the Gemini crypto exchange company.