The court allows Genesis to sell $1,3 billion worth of GBTC fund shares
The platform owns about $1,6 billion worth of GBTC, ETHE, and ETCG shares
![The court allows Genesis to sell $1,3 billion worth of GBTC fund shares](https://storage.getblock.net/source/1/p4QkWomnrovmslZfc4LlImLP5m2AGdGK.webp)
15.02.2024 - 11:25
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2 min
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What’s new? On February 14, bankrupt crypto broker Genesis received court approval to sell 35 million shares of the $1,3 billion Grayscale Bitcoin Trust (GBTC) fund as part of an effort to compensate investors. The platform owns about $1,6 billion worth of shares of GBTC, Grayscale Ethereum Trust (ETHE), and Grayscale Ethereum Classic Trust (ETCG), according to documents filed in February. Genesis sought court approval to sell bitcoin, Ethereum, and Ethereum Classic held in Grayscale Investment Company’s exchange-traded products on February 2.
What else is known? Genesis’ parent company, Digital Currency Group (DCG), has attempted to delay the sale until a court rules on whether to approve the brokerage’s debt repayment plan. DCG said it is not opposed to selling the shares, but noted that it may be a premature decision.
DCG lawyer Jeffrey Seyffart said the company is also concerned that Grayscale shares could be sold too quickly, driving down prices and minimizing potential recoveries for Genesis creditors. In addition, DCG has been seeking rights to consult on Grayscale shares.
![Genesis will pay $21 million to the SEC after reimbursing creditors](https://storage.getblock.net/source/1/zFPa6Reiz9A8aHy2EdtphHJaFE_9-fuC.png)
Genesis will pay $21 million to the SEC after reimbursing creditors
In exchange, the regulator will drop a civil lawsuit about unregistered securities trading
Earlier, Genesis entered into a settlement agreement with the US Securities and Exchange Commission (SEC) over its lawsuit alleging violations under the Earn program. The broker will pay a $21 million fine after repaying debts to creditors. Gemini is also a defendant in this lawsuit.
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