Recently, Genesis Global Capital, a significant company that has declared bankruptcy, submitted a proposal to the US Bankruptcy Court in the Southern District of New York, seeking the green light to divest around $1.6 billion worth of trust assets. These assets primarily comprise shares in Grayscale’s Bitcoin, Ethereum, and Ethereum Classic Trusts. In a strategic move, Genesis has also requested expediting the timeline for the court’s consideration of the sale to coincide with an upcoming hearing.
Details on the Proposed Asset Liquidation
The assets poised for sale include $1.4 billion in Grayscale Bitcoin Trust shares, with additional holdings in Grayscale Ethereum and Ethereum Classic Trust shares valued at $165 million and $38 million, respectively. Many of these shares are tied to the collapse of Three Arrows Capital and the Gemini Earn program.
In a notable development, Genesis is attempting to recover over 31 million shares, worth roughly $1.2 billion, which were pledged but not transferred to Gemini, leading to a dispute over their ownership. Gemini recently labeled this development as significant, especially after the Grayscale Bitcoin Trust’s authorization as an exchange-traded product.
Genesis has also consented to a $21 million settlement with the SEC, using its remaining funds to address legal challenges associated with its Gemini Earn program.
Bitcoin’s Market Performance Unaffected
Amid these proceedings, Bitcoin’s market activity remains unshaken, maintaining a trading price around $43,000. Despite a 39% drop in trading volume within the past day, the cryptocurrency’s total market volume hovers just under the $850 billion mark.