Bankrupt crypto lender Genesis Global Capital wants to sell off trust assets worth roughly $1.6 billion to help navigate its financial troubles. These assets include shares in various Grayscale trusts, primarily Bitcoin and Ethereum. They aim to approve the sale by the court as soon as Thursday, February 8th.
This move is significant because these assets were initially used as collateral for Gemini's Earn program, a point of contention between the two companies. Genesis is also seeking legal ownership of additional shares they believe were pledged but never transferred.
Despite this development, Gemini remains optimistic, viewing the sale as a "step forward" following regulatory approval for a Bitcoin ETP. This suggests they expect the sale to benefit both parties in the long run.
It's important to note that Genesis still faces the $21 million SEC fine, which will be paid from any remaining funds after the bankruptcy process.
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