Genesis seeks court authorization to sell approximately $1.6 billion worth of trust assets

According to The Block, Genesis Global Capital has submitted a new motion to the US Bankruptcy Court for the Southern District of New York, seeking authorization to sell approximately $1.6 billion worth of trust assets. The documents show that Genesis holds assets including approximately $1.4 billion worth of Grayscale Bitcoin Trust Fund shares, approximately $165 million worth of Grayscale Ethereum Trust Fund shares, and approximately $38 million worth of Grayscale Ethereum Classic Trust Fund shares. These GBTC stocks were initially collateral transferred by Genesis to Gemini and some were obtained from the bankrupt cryptocurrency hedge fund Three Arrows Capital.

Genesis has also filed a separate motion requesting an expedited timeline so that the bankruptcy court can consider the sale motion at the next hearing on February 8th. Additionally, the company is seeking legal claim over 31,180,804 additional shares (worth approximately $1.2 billion). These shares have been pledged to Gemini but have not been transferred, and their ownership has not yet been determined by the court.