Genesis Global Capital Files Motion for Cryptocurrency Trust Asset Sale in Bankruptcy Court
Genesis Global Capital, the bankrupt cryptocurrency company, has filed a petition with the bankruptcy court, seeking approval to liquidate holdings from Grayscale’s Bitcoin Trust (GBTC), Ethereum Trust (ETHE), and Ethereum Classic Trust (ETCG).
With an estimated value of around $1.59 billion, Genesis argues that selling these assets would mitigate potential risks associated with price volatility and facilitate the allocation of funds to creditors. The company, having reached an agreement with the U.S. Securities and Exchange Commission (SEC), asserts that the court’s committee, ad hoc group, and Gemini have all consented to the proposed asset disposal.
Genesis must also secure approval from Grayscale before proceeding with the sale, transfer, or redemption of shares, according to the motion. This move follows recent outflows from GBTC, resulting in a decrease in bitcoin holdings from 617,079.99 BTC on Jan. 12 to the current 478,337.43 BTC, coupled with a decline in assets under management from $26.93 billion to an estimated $20.53 billion. Genesis settled with the SEC, agreeing to pay $21 million to the regulatory body.
Clever Robot News Desk 6th February 2024
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