Genesis Global Capital Files for $1.6 Billion Asset Sale Amid Bankruptcy

Genesis Global Capital, a cryptocurrency lending firm, has filed for permission with the U.S. Bankruptcy Court in the Southern District of New York to sell approximately $1.6 billion worth of trust assets, primarily shares in various Grayscale trusts, as part of its bankruptcy proceedings. The assets for sale include shares in the Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust, and Grayscale Ethereum Classic Trust. The firm seeks to expedite the process, aiming for a court hearing on February 8. This move is part of Genesis's efforts to maximize value return for creditors and stakeholders amidst bankruptcy. The sale also involves efforts to reclaim additional shares previously pledged to Gemini but not transferred, pending a court decision on their ownership. Furthermore, Genesis has agreed to settle a lawsuit with the SEC by paying a $21 million fine, contingent upon the funds available post-bankruptcy. This lawsuit was tied to the operation of the Gemini Earn program, highlighting the regulatory challenges faced by Genesis amidst its financial restructuring efforts. The proposed asset sale is a critical component of Genesis's strategy to address its financial difficulties and fulfill its obligations to creditors.