Crypto News– A U.S. bankruptcy judge has granted Genesis, a bankrupt crypto trading desk and lender, permission to sell $1.6 billion worth of its shares in Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust (ETHE), and Grayscale Ethereum Classic Trust (ETCG), as part of its effort to repay creditors. Despite objections from Digital Currency Group (DCG), Genesis’ parent company, regarding the timing of the sale in relation to the overall bankruptcy plan, the approval was given.
Genesis Granted Permission to Market 1.6 Billion Dollars Grayscale Bitcoin Trust Shares
DCG raised concerns about the potential unfairness of the repayment plan, arguing that it disproportionately benefits a small group of creditors and could result in overpayment. This contention arises from the significant increase in the prices of digital assets like Bitcoin (BTC) and Ethereum (ETH) since Genesis declared bankruptcy in January 2023.
However, the judge ruled in favor of Genesis, allowing the sale to proceed. Genesis intends to utilize the proceeds to repay customers and eliminate monthly fees associated with its trust agreements. This approval marks a step in Genesis’ broader liquidation strategy, which involves settlements with regulatory bodies to prioritize customer reimbursements.
The court will review Genesis’ entire bankruptcy plan on February 26, where further decisions will be made regarding the company’s future course of action.
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