Genesis Seeks Approval to Sell $1.6B in Bitcoin, Ether Trust Holdings
Bankrupt cryptocurrency lender Genesis has filed a motion to sell over $1.6 billion in bitcoin, ether, and ethereum classic held in Grayscale’s trust products. If approved, this could put selling pressure on bitcoin. Genesis' assets include nearly $1.4 billion in Grayscale Bitcoin Trust, $165 million in Grayscale Ethereum Trust, and $38 million in Grayscale Ethereum Classic Trust. Some GBTC shares were transferred to Gemini as collateral for the Gemini Earn program. Genesis is also seeking an additional 31 million GBTC shares pledged to Gemini but not transferred. Genesis and Grayscale are part of the Digital Currency Group's crypto empire, which suffered losses and controversies in 2022. Gemini, Genesis' biggest creditor, estimates that over 100,000 of its users are affected by the bankruptcy, with debts totaling between $1 billion and $10 billion. Genesis also owes over $3.5 billion to its top 50 creditors.
