Ethereum

Gemini

Bitcoin

Grayscale Bitcoin Trust

Ethereum Classic

Genesis Global Capital, a cryptocurrency lending firm, has submitted a request to the U.S. Bankruptcy Court in the Southern District of New York for permission to sell around $1.6 billion worth of trust assets. This move comes as part of the company’s efforts to navigate its ongoing bankruptcy proceedings. The assets slated for sale are primarily shares in various Grayscale trusts, including the <a href="https://coingape.com/breaking-gemini-sues-genesis-over-1-6b-bitcoin-trust-shares/" rel="noopener noreferrer nofollow">Grayscale Bitcoin Trust</a> (GBTC), Grayscale Ethereum Trust, and Grayscale Ethereum Classic Trust.
<h2 id="strong-genesis-seeks-court-approval-for-asset-liquidation-strong">Genesis Seeks Court Approval for Asset Liquidation</h2>
The<a rel="noopener noreferrer nofollow" href="https://www.reuters.com/markets/deals/crypto-exchange-gemini-says-bankrupt-genesis-moves-authorize-sale-trust-assets-2024-02-03/#:~:text=Feb%203%20(Reuters)%20%2D%20Cryptocurrency,that%20provide%20investors%20exposure%20to"> detailed filing by Genesis</a>, a subsidiary of the Digital Currency Group, outlines the composition of the assets intended for sale. Approximately $1.4 billion of the total assets are in the Grayscale Bitcoin Trust shares, with an additional $165 million in the Grayscale Ethereum Trust and about $38 million in the Grayscale Ethereum Classic Trust. The firm also motioned to expedite the process, requesting that the court hear the sale motion at its next session on February 8.
This strategic move aims to maximize the value return for the company’s creditors and stakeholders amidst bankruptcy. Genesis’s decision to liquidate these assets follows its previous engagements in the cryptocurrency lending space, including the collateral transferred to Gemini as part of the Gemini Earn program and assets acquired through the bankruptcy of Three Arrows Capital. The sale also encompasses efforts to legally reclaim 31,180,804 additional shares, valued at roughly $1.2 billion, previously pledged to Gemini but not transferred, pending a court decision on their ownership.
<h2 id="strong-impact-on-stakeholders-and-regulatory-settlements-strong">Impact on Stakeholders and Regulatory Settlements</h2>
The initiative has been met with responses from involved parties, including Gemini, which labeled the filing a significant advancement. This development is particularly noteworthy following the recent <a href="https://coingape.com/spot-bitcoin-etf-approved-heres-why-grayscale-is-the-biggest-winner/" rel="noopener noreferrer nofollow">approval of the Grayscale Bitcoin Trust</a> as an exchange-traded product (ETP) on January 10, potentially affecting the valuation and liquidity of the assets in question.
Furthermore, Genesis has recently <a href="https://coingape.com/genesis-agrees-to-21-million-settlement-with-sec-in-lawsuit/" rel="noopener noreferrer nofollow">agreed to settle </a>a lawsuit with the Securities and Exchange Commission (SEC) by paying a $21 million fine, contingent upon the funds available post-bankruptcy. This lawsuit was tied to the operation of the <a href="https://coingape.com/gemini-slams-new-york-post-for-bad-reporting-on-earn-program/" rel="noopener noreferrer nofollow">Gemini Earn program</a>, highlighting the regulatory challenges faced by Genesis amidst its financial restructuring efforts.
The proposed asset sale is a critical component of Genesis’s broader strategy to address its financial difficulties and fulfill its obligations to creditors. By liquidating its holdings in the Grayscale trusts, Genesis aims to leverage the current market conditions and regulatory developments to optimize the recovery for its stakeholders.
Read Also: <a href="https://coingape.com/bitcoin-atm-scam-warning-issued-by-kenosha-police-to-residents/" rel="noopener noreferrer nofollow">Bitcoin ATM Scam Warning Issued by Kenosha Police to Residents</a>
&nbsp;
The post <a href="https://coingape.com/genesis-files-for-asset-sale-eyes-grayscale-trust-monetization/" rel="noopener noreferrer nofollow">Genesis Files for Asset Sale, Eyes Grayscale Trust Monetization</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Genesis Files for Asset Sale, Eyes Grayscale Trust Monetization

Mục lục

Coingape News Media

Các bài viết khác được xuất bản trên 3 thg 2, 2024

South Korea Experiences Unusual Trading Volume Increases in 5 Altcoins

Coinbase officially ends Bitcoin SV support

Jupiter Price Prediction: Solana Token JUP Bumps Along The Bottom After 61% Crash Since Launch As...

Shiba Inu Could Rally Over 100000%, Hit $0.01: Predicts Analyst

Juventus FC Partners With Polish Crypto Exchange Zondacrypto

Bitcoin Whale Numbers Rise as Market Sees Price Volatility

Tham gia bản tin miễn phí của chúng tôi để cập nhật tin tức về tiền điện tử hàng ngày!