Summary
A U.S. bankruptcy judge has granted permission to Genesis, a bankrupt crypto trading desk and lender, to sell $1.6 billion worth of its Grayscale Bitcoin Trust (GBTC) shares, as well as its shares in Grayscale Ethereum Trust (ETHE) and Grayscale Ethereum Classic Trust (ETCG). This is part of Genesis’ plan to repay its creditors. The approval was made despite objections from Digital Currency Group (DCG), Genesis’ parent company, which argued that the plan favored a small group of creditors and overpaid them. Genesis aims to use the proceeds to repay customers and avoid monthly fees associated with its trust agreements. A future court hearing will consider the approval of Genesis’ entire bankruptcy plan.
Key Points
1. A U.S. bankruptcy judge has granted Genesis permission to sell $1.6 billion worth of its Grayscale Bitcoin Trust (GBTC) shares, as well as shares in Grayscale Ethereum Trust (ETHE) and Grayscale Ethereum Classic Trust (ETCG), to repay its creditors.
2. Digital Currency Group (DCG), the parent company of Genesis, objected to the sale, arguing that it disproportionately favors a small group of creditors and overpays them. However, the judge approved the sale despite these objections.
3. Genesis plans to use the proceeds from the sale to repay customers and avoid monthly fees associated with its trust agreements. This is part of the company’s broader liquidation plan, which includes settlements with regulatory bodies to prioritize customer repayments. A court hearing on February 26 will consider the approval of Genesis’ entire bankruptcy plan.