Genesis Seeks Bankruptcy Court Approval to Sell Approximately $1.6 Billion in Grayscale Trust Assets

Digital Currency Group's subsidiary, Genesis Global Capital, has submitted a new motion to the U.S. Bankruptcy Court for the Southern District of New York, seeking authorization to sell approximately $1.6 billion worth of Grayscale Trust assets.

According to the documents, Genesis holds assets including Grayscale GBTC shares worth about $1.4 billion, Grayscale Ethereum Trust Fund (ETHE) shares worth about $165 million, and Grayscale Ethereum Classic Trust Fund (ETCG) shares worth about $38 million.

The company has also filed a separate motion to expedite the related deadlines for consideration at the next bankruptcy court hearing on February 8.

Genesis initially transferred the disputed GBTC shares, used as collateral, to Gemini as part of the latter's Gemini Earn program. Some of these shares were acquired through the bankruptcy from Three Arrows Capital.

Furthermore, the company is seeking legal recourse to reclaim an additional 31,180,804 GBTC shares from Grayscale (worth about $1.2 billion) that were pledged to Gemini but never transferred. The ownership of these shares is a matter pending resolution by the court.