Bankrupt cryptocurrency financier Genesis Global Capital has filed a new petition in U.S. Bankruptcy Court in the Southern District of New York seeking permission to sell approximately $1.6 billion in trust assets.
According to the filing, assets held by Genesis, a subsidiary of Digital Currency Group, include approximately $1.4 billion worth of Grayscale Bitcoin Trust stock, approximately $165 million worth of Grayscale Ethereum Trust shares, including Grayscale Ethereum Classic Trust shares worth approximately $38. a million.
The company also filed a separate motion seeking to shorten the relevant deadline so that the sale motion can be heard at the Bankruptcy Court's next hearing on Thursday, February 8th.
The GBTC shares in question, along with some shares acquired in the bankruptcy of Three Arrows Capital, constituted the original collateral that Genesis transferred to Gemini as part of the Gemini Earn program. The company is also seeking legal claims for an additional 31,180,804 shares worth approximately $1.2 billion that were promised to Gemini but not transferred. Ownership of the shares is currently an unresolved issue in the courts.
In an announcement on its website, Gemini called the filing “an important step forward following the January 10 approval of Grayscale Bitcoin Trust (GBTC) as an exchange traded product (ETP).” .
Earlier this week, Genesis agreed to pay a $21 million penalty to the SEC from funds left over from bankruptcy to resolve the agency's lawsuit against the company over its management of the Gemini Earn program.
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