Gemini

Bitcoin ETF

Read

Ethereum Classic

Grayscale’s GBTC may experience new sell pressure and outflows following a ruling in the Genesis bankruptcy case on Feb. 14.
U.S. Bankruptcy Judge Sean Lane ruled that Digital Currency Group (DCG) subsidiary Genesis has been approved to offload shares from Grayscale crypto products, including its converted <a href="https://crypto.news/tag/bitcoin-etf/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin ETF</a> GBTC, its Ethereum Trust (ETHE), and its Ethereum Classic Trust (ETCG).&nbsp;
Judge Lane’s <a href="https://www.bloomberg.com/news/articles/2024-02-13/stock-market-today-dow-s-p-live-updates" target="_blank" rel="noopener noreferrer nofollow">verdict</a> allows the defunct lender to liquidate 35 million GBTC shares worth around $1.6 billion. Each share traded at around $46 when the ruling was issued. The bankrupt lender can also sell $182 million in ETHE and $3 million in ETCG.
Part of the ruling also permits Genesis to liaise with a broker of its choice for the sales. The firm has options to liquidate for Bitcoin or convert to cash. No deadline or timeframe was set for this process.&nbsp;
Furthermore, Judge Lane barred the parent company, DCG, from consulting. DCG cannot be expected to field unbiased opinions regarding the GBTC shares, said Judge Lane. However, the court found no fault with Barry Silbert’s firm filing the <a href="https://crypto.news/bankrupt-genesis-seeks-to-sell-over-1b-gbtc-shares/" target="_blank" rel="noopener noreferrer nofollow">request</a> due to its obvious interests.
This comes after a judge ruled against DCG altering ownership amid bankruptcy proceedings.&nbsp;
You might also like: <a href="https://crypto.news/court-prevents-dcg-from-altering-genesis-ownership/" rel="noopener noreferrer nofollow"> Court prevents DCG from altering Genesis ownership </a>
<h2 class="wp-block-heading" id="genesis-settles-lawsuits">Genesis settles lawsuits</h2>
The beleaguered crypto lender reportedly settled lawsuits within the year’s first two months.
Shortly after <a href="https://crypto.news/dcg-completes-1-billion-payoff-of-all-short-term-loans/" target="_blank" rel="noopener noreferrer nofollow">receiving</a> a $700 million short-term loan pay from DCG, Genesis reached an agreement with New York’s Department of Financial Service, <a href="https://crypto.news/genesis-to-surrender-bitlicense-pay-8m-fine-in-nydfs-lawsuit/" target="_blank" rel="noopener noreferrer nofollow">fining</a> the company $8 million and repossessing its BitLicense. This license permitted business operations with the state. The lender also <a href="https://crypto.news/genesis-sec-settlement-gemini-earn-lawsuit/" target="_blank" rel="noopener noreferrer nofollow">agreed</a> to a $21 million settlement with the U.S. SEC in a lawsuit involving Gemini Earn.&nbsp;
A major lawsuit remains pending with New York Attorney General Letitia James. The suit alleges convoluted fraud by Genesis, Gemini, DCG, and its affiliates before crypto’s 2022 contagion. According to recent filings, James initially sued the entities for $1 billion, but this figure was <a href="https://crypto.news/new-york-ag-lawsuit-dcg-3-billion-genesis-settlement/" target="_blank" rel="noopener noreferrer nofollow">raised</a> to $3 billion.&nbsp;
Read more: <a href="https://crypto.news/new-york-ag-lawsuit-dcg-3-billion-genesis-settlement/" rel="noopener noreferrer nofollow"> New York extends lawsuit against DCG to $3b after Genesis settlement </a>

Genesis granted court permission to sell $1.6b Grayscale GBTC shares

Table of Contents

crypto.news

Other articles published on Feb 14, 2024

24 Crypto Update, 13 Feb: Markets Plunge After US CPI Report

Bitcoin Price Prediction: As Michael Saylor Says Demand For Bitcoin Products Is 10X The Supply, E...

Will SEI and IMX Maintain Bullish Momentum Amidst KAS’s Dip?

Starknet To Airdrop STRK Tokens To 1.3 Million Wallets Next Week

Starknet’s STRK Airdrop to Benefit dYdX Users and Beyond

SEC’s Approval of Bitcoin ETFs Not a Nod to Ethereum, Says Gensler

Join our free newsletter for daily crypto updates!