Genesis Global Capital announced a profitable sale of its Grayscale Bitcoin Trust (GBTC) shares, converting the proceeds into 32,041 Bitcoins to compensate customers and creditors. This move follows the liquidation of approximately 36 million GBTC shares as part of the company’s bankruptcy proceedings, confirmed by Genesis’s legal team in a recent court filing.
The New York bankruptcy court had previously approved Genesis’s request to sell its Grayscale shares, valued at around $1.6 billion, including GBTC and stakes in Grayscale Ethereum trusts. The Bitcoin acquired from this sale is currently valued at nearly $2.2 billion.
Genesis intends to allocate the Bitcoin to its Gemini Earn debtors, as part of a refund plan resulting from a $21 million settlement with the SEC. This settlement addressed regulatory issues related to the offering of unregistered securities through the Gemini Earn program, aiming to fulfill the company’s obligations to its creditors.
Meanwhile, Digital Currency Group (DCG) seeks to dismiss a lawsuit brought by New York Attorney General Letitia James, alleging investor fraud and mismanagement. The lawsuit implicates DCG and its CEO, Barry Silbert, in actions related to Genesis and the Gemini crypto exchange. This legal battle underscores ongoing scrutiny of the digital asset industry and the importance of clear regulations for market stability.