"Alamak, I wonder why Genesis suddenly wants to sell BTC and ETH shares?"
During a court hearing held in White Plains New York, Genesis Global was approved by United States (US) Bankruptcy Judge Sean Lane to sell approximately 35 million Grayscale Bitcoin Trust shares worth $1.3 billion.
It is also reported that Genesis wants to sell more than 11 million shares of two Grayscale Ethereum Trusts with a combined value of more than $22 million as detailed in a court filing dated February 2, 2024.
However, Digital Currency Group (DCG), which is the parent company of Genesis, tried to postpone the sales proposal so that the court decided to decide on a slow repayment of the subsidiary's debt which was scheduled for the end of this month.
This is because DCG is concerned that selling immature Grayscale shares could lower the price thereby minimizing the potential for recovery for Genesis' debtors, therefore DCG is seeking the right to have input on the sale of Grayscale shares.
However, Judge Sean Lane, who sided with Genesis, said that the firm had the right to determine strategic sales of its assets, followed by sales that would be carried out from time to time with the help of brokers to avoid any rapid stock transfers that could impact prices.
In that series, Genesis is moving forward with slow liquidations that require closing the company and paying back customers in cash or cryptocurrency but need to also depend on the type of their deposits.
Under the terms of the settlement, the SEC will be paid a $21 million fine if Genesis has excess funds after repaying customers and any funds obtained from the bankruptcy proceedings will be used by the New York State Attorney to help creditors accused of being defrauded by Genesis.
