The court cleared Genesis to sell Greyscale GBTC shares for $1.3B
A bankruptcy judge is allowing Genesis Global Holco to liquidate a portion of its $1.3 billion Grayscale Bitcoin Trust (GBTC) shares in an effort to recoup investors.
On February 14, Judge Shawn Lane signed an order allowing Genesis to divest part of its investments from Grayscale in a hearing held via Zoom in the US District Court for the Southern District of New York. February court filings indicated that Genesis owns roughly $1.6 billion worth of GBTC, Grayscale Ethereum Trust (ETHE) and Grayscale Ethereum Classic Trust (ETCG) shares.
As part of its bankruptcy filing, Genesis said it held 35 million GBTC shares and 11 million ETHE and ETCG shares. Grayscale filed a limited objection to the firm's plan to offload trust assets on Feb. 9, saying the sale was “approved in writing” by the investment firm but was not “intended to delay, impede or impede the discharge of liabilities.” Sale or transfer of trust assets.
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On January 10, the US Securities and Exchange Commission (SEC) approved Greyscale's GBTC-to-Bitcoin (BTC) exchange-traded fund, along with 10 other asset managers' offers, to be listed and converted on a US exchange. Genesis said the SEC approval would facilitate the redemption of shares for cash.
On January 31, Genesis announced a $21 million settlement with the SEC for its role in offering and selling unregistered securities through the Gemini Income program. The firm is separate from Genesis Global Trading, which faced an enforcement action filed by the New York Department of Financial Services in January.
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