Genesis Approved to Sell $1.3 Billion GBTC Shares as Pressure Looms

Genesis Approved to Sell $1.3 Billion GBTC Shares as Pressure Looms

Genesis Approved to Sell $1.3 Billion GBTC Shares as Pressure Looms

According to Bloomberg, the United States Southern District Court approved the sale of 35 million shares of Grayscale Bitcoin Trust (GBTC) by the bankrupt lending platform Genesis Global Holdco at a total value of over $1.3 billion during a hearing yesterday. The cryptocurrency lending institution stated that this process will be gradually completed with the assistance of brokers.

According to court documents from February, Genesis also holds 8.7 million shares of Grayscale Ethereum Trust (ETHE) and 2.9 million shares of Grayscale Ethereum Classic Trust (ETCG), which will also be sold to repay creditors.

As previously reported by Zombit, after successfully transitioning into a spot ETF in January, the bankrupt cryptocurrency exchange FTX was the first to sell 22 million shares of GBTC, worth nearly $1 billion, completely liquidating its holdings. The selling pressure at that time caused some downward pressure on Bitcoin.

Genesis pays SEC fine

On the other hand, earlier this month, Genesis agreed to pay a $21 million fine to the U.S. Securities and Exchange Commission (SEC) to settle a lawsuit against its Gemini Earn program. The settlement agreement will resolve a civil lawsuit filed a year ago against Gemini and Genesis, accusing the two companies of issuing and selling unregistered securities to retail investors through the Gemini cryptocurrency lending program.