Genesis Global Capital, a presently inactive entity that was engaged in cryptocurrency lending, has recently submitted a revised motion to the United States Bankruptcy Court for the Southern District of New York. This is in reference to its need to receive approval for liquidating trust assets worth $1.4 billion. The company has requested a shorter timeframe and has agreed to pay $21 million to settle the SEC’s lawsuit.
Genesis, an entity affiliated with the Digital Currency Group (DGC), holds shares in Grayscale Bitcoin Trust valued at $1.4 billion, Grayscale Ethereum Trust worth $165 million, and Grayscale Ethereum Classic Trust valued at $38 million.
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The organization has requested an expedited deadline in order to present the issue at the upcoming bankruptcy court hearing, which is scheduled for February 8, 2024. The GBTC shares, along with those acquired during the bankruptcy proceedings of Three Arrows Capital (3AC), were the initial collateral transferred to Gemini in connection with its Gemini Earn Program.
In addition, the business is attempting to acquire the 31,180,804 additional shares, valued at around $1.2 billion, from Gemini. Unfortunately, this did not transpire as planned. The court has not yet made a ruling on the issue of share ownership.
Following the approval of Grayscale Bitcoin Trust (GBTC) to transition into an exchange-traded fund (ETF), a representative from Gemini issued a positive statement on the organization’s website.
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In a $21 million fine, Genesis has resolved its dispute with the SEC over the operation of its Gemini Earn Program.
