Key Takeaways
- Genesis wins court approval to sell Grayscale shares, overcoming objections from its parent company, DCG.
- The Court approves the sale of BTC, ETH, ETC Grayscale shares which are crucial for Genesis’ Chapter 11 restructuring.
- Genesis plans to use the sale proceeds to repay creditors, aligning with its bankruptcy resolution strategy
Genesis Global has received court approval to proceed with the sale of approximately 35.9 million shares of Grayscale Bitcoin Trust.
This decision came from Judge Sean Lane of the U.S. Bankruptcy Court in White Plains, New York, who overruled the objections raised by Genesis Global’s parent company, Digital Currency Group.
Genesis Defies Parent Company, Wins GBTC Sale Approval
The ruling, issued on Wednesday, also sanctioned the sale of about 8.7 million shares of Grayscale Ethereum Trust and nearly three million shares of Grayscale Ethereum Classic Trust, marking a pivotal moment in the ongoing bankruptcy proceedings of the cryptocurrency lender.
Genesis Global recently disclosed in a court filing that the combined value of its Grayscale shares, targeted for sale, amounted to approximately $1.6 billion as of late January.
During a court hearing, Sean O’Neal, representing Genesis, emphasized the necessity of judicial approval for the sale or transfer of these Grayscale assets.
This step is crucial as Genesis prepares for its wind-down under the Chapter 11 bankruptcy plan, with a confirmation hearing scheduled later this month. The move underscores the crypto lender’s efforts to navigate through its bankruptcy proceedings effectively.
Teuta is a seasoned writer and editor with more than 15 years of experience. She has expertise in covering macroeconomics and technology as well as the cryptocurrency and blockchain industries. She has worked for several publications as a journalist and editor, including Forbes, Bloomberg, CoinTelegraph, Coin Rivet, CoinSpeaker, VRWorld and Arcane Bear.
Teuta began her professional career in 2005, working as a lifestyle writer at Cosmopolitan in Croatia. From there, she branched out to several other publications, covering mainly business and the economy. She then turned her attention to the world of cryptocurrency and blockchain, believing that crypto is among the most important inventions in the history of humanity. Her involvement in fintech began in 2014 and she has since lent her expertise in writing, editing and gathering information about the world of crypto, blockchain, NFTs and Web3.
An all-round news hound, mentor, editor, and writer, Teuta enjoys teamwork and good communication. She holds a WSET2 diploma and has a thing for chablis, punkrock music and shoes. She also holds a double MA in Political science and Entrepreneurship.
