Bankrupt crypto lender Genesis seeks approval to sell $1.6B of trust assets

Debtors for the bankrupt crypto lending firm stressed the need for fast approval to sell the shares before any potential price fluctuations.

Bankrupt crypto lending firm Genesis has requested the United States Bankruptcy Court in the Southern District of New York for permission to liquidate assets held in its Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust (ETHE), and Grayscale Ethereum Classic Trust (ETCG), totaling approximately $1.6 billion.

In a recent court filing, Genesis emphasized the urgency of obtaining approval to sell the trust assets ahead of any potential fluctuations in the prices of the underlying assets—Bitcoin (BTC) Ethereum (ETH), and Ethereum Classic (ETC). Genesis stated that the aim is to maximize the funds available for distribution to creditors.

According to the filing, as of September 2023, the GBTC Trust held about 3.2% of all circulating Bitcoin. In December 2022, the ETHE Trust had approximately 2.5% of all circulating Ethereum, and the ETCG Trust held roughly 8.5% of all circulating Ethereum Classic.

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