Genesis Seeks Court Approval for Trust Asset Sale Amid Liquidation Plan

Genesis Files Motion for Trust Asset Sale

Cryptocurrency lender Genesis has initiated a legal motion to authorize the sale of trust assets as part of its liquidation strategy. The motion, filed in the U.S. Bankruptcy Court, seeks approval to sell shares from Grayscale Ethereum trusts, offering investors exposure to cryptocurrency. This step is crucial for Genesis as it attempts to monetize its holdings, specifically targeting 30,905,782 shares of the Grayscale Bitcoin Trust.

Expedited Hearing and Legal Developments

An expedited hearing has been requested for February 8th to accelerate the authorization process. This motion comes in the wake of a recent settlement with the U.S. Securities and Exchange Commission concerning the defunct Gemini Earn lending program. This program was suspended during the crypto market downturn in November 2023, leading to ongoing litigation involving Genesis, Gemini, and Digital Currency Group, Genesis's parent company.

Liquidation Plan to Repay Customers

Genesis is advancing its liquidation plan with the primary goal of reimbursing customers. The repayment will be made in cash or cryptocurrency, depending on the original deposits in the Earn program. This strategic move is designed to address the financial obligations arising from the program's termination and to mitigate the impact on its stakeholders.

The developments reflect Genesis's efforts to stabilize its financial situation and fulfill commitments to its customers amid the challenging crypto market conditions. Ensuring a smooth and transparent process is critical for the involved parties as they navigate the complexities of the current crypto landscape.