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Post: Bankrupt Crypto Lender Genesis Requests Approval to Liquidate $1.6 Billion Trust Assets

Bankrupt Crypto Lender Genesis Requests Approval to Liquidate $1.6 Billion Trust Assets

Key Points:

  • Bankrupt crypto lending firm Genesis has requested permission to liquidate assets held in Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust (ETHE), and Grayscale Ethereum Classic Trust (ETCG) worth $1.6 billion.
  • Genesis stressed the urgency of obtaining approval to sell the trust assets to maximize funds for distribution to creditors.
  • The recent conversion of GBTC to a cash redeemable spot Bitcoin exchange-traded fund (ETF) allows for the redemption of shares in cash.

Genesis Requests Approval to Liquidate $1.6 Billion in Trust Assets

Genesis, the bankrupt crypto lending firm, has requested permission from the United States Bankruptcy Court to liquidate its assets held in Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust (ETHE), and Grayscale Ethereum Classic Trust (ETCG), which are valued at approximately $1.6 billion. The company emphasizes the importance of obtaining approval quickly to sell the trust assets before any potential price fluctuations in Bitcoin (BTC), Ethereum (ETH), and Ethereum Classic (ETC). The goal is to maximize the funds available for distribution to creditors.

Furthermore, Genesis points out that the recent approval from the United States Securities and Exchange Commission (SEC) to convert GBTC to a cash redeemable spot Bitcoin ETF allows for the shares to be redeemed in cash. This conversion provides Genesis with the opportunity to liquidate the trust assets more efficiently, benefiting both the company and its creditors.

Hot Take

As a bankrupt crypto lending firm, Genesis is striving to liquidate its trust assets to repay its creditors. The urgency conveyed in the court filing demonstrates the need to secure approval quickly to avoid potential price fluctuations and maximize the available funds for distribution. The recent regulatory approval for GBTC to be converted into a cash redeemable spot Bitcoin ETF is a positive development for Genesis, as it offers a more efficient and potentially advantageous method for liquidating assets. This request for liquidation aligns with the overall goal of resolving the bankruptcy proceedings and ensuring a fair distribution of proceeds to all parties involved.

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