Bankrupt cryptocurrency bank Genesis Global Capital has filed a new application with the US Bankruptcy Court in the Southern District of New York for a license to sell approximately $1.6 billion in trust assets.
According to the filing, assets held by Genesis, a subsidiary of Digitalency Group, include Grayscale Bitcoin Trust shares worth about $1.4 billion, Grayscale Ethereum Trust shares worth about $165 million, and Grayscale Ethereum Classic Trust shares worth about $38. million.
The company has also filed a separate request to shorten the relevant deadlines so that the sale request can be heard at the next bankruptcy court hearing on Thursday, February 8.
The GBTC shares in question constitute the initial collateral transferred from Genesis to Gemini as part of the latter company's Gemini Earn program, along with some shares acquired through the bankruptcy of Three Arrows Capital. The company is also seeking to legally claim an additional 31,180,804 shares (worth approximately $1.2 billion) that were pledged to Gemini but never transferred; Stock ownership is currently an unresolved matter before the court.
Gemini, in an announcement on its website, called the filing “…an important step forward following the approval of Grayscale Bitcoin Trust (GBTC) as an exchange-traded product (ETP) on January 10th.”
Earlier this week, Genesis agreed to pay a $21 million fine to the Securities and Exchange Commission from any money left over after bankruptcy to settle a lawsuit the agency filed against the company for operating the Gemini Earn program.
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