Bankrupt Crypto Lender Genesis Has Moved To Authorise Trust Assets Sale, Gemini Says

The motion specifically aims to empower Gemini to monetise an initial collateral amounting to 30,905,782 shares of Grayscale Bitcoin Trust

Genesis is actively pursuing a liquidation strategy designed to reimburse customers with either cash or cryptocurrency.

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Gemini Trust Co has disclosed that crypto lender Genesis has taken a significant step by submitting a motion to the US Bankruptcy Court. The motion, filed on Friday, seeks approval for the sale of trust assets and requests authorisation to capitalise on its interests in two Grayscale Ethereum trusts, providing investors exposure to the world of cryptocurrency.

The motion specifically aims to empower Gemini to monetise an initial collateral amounting to 30,905,782 shares of Grayscale Bitcoin Trust, as conveyed by Gemini in a statement released on Saturday. Genesis has urged for an expedited hearing on this motion, scheduled for February 8, according to the statement.

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This development follows closely on the heels of Genesis resolving a legal dispute with the US Securities and Exchange Commission related to its now-defunct Gemini Earn lending programme. Genesis is actively pursuing a liquidation strategy designed to reimburse customers with either cash or cryptocurrency, depending on the type of currency they deposited into the Earn programme.

The Earn programme, abruptly halted during the crypto market downturn in November 2023, has since become a focal point for legal battles involving Genesis, Gemini, and Genesis's parent company, Digital Currency Group. These entities are currently embroiled in litigation arising from the failure of the Earn programme.

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