According to Bloomberg, the US Southern District Court of New York approved the sale of 35 million shares of Grayscale Bitcoin Trust (GBTC) by bankrupt lending platform Genesis Global Holdco. The total value of the sale exceeds $1.3 billion. The cryptocurrency lending institution stated that this process will be gradually completed with the help 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 GBTC successfully transformed into a spot ETF in January, bankrupt cryptocurrency exchange FTX was the first to sell 22 million shares of GBTC stock, worth nearly $1 billion, completely liquidating its holdings. This sell-off caused some downward pressure on Bitcoin at that time.
Genesis pays SEC fine
On the other hand, earlier this month, Genesis agreed to pay a $21 million fine to the US Securities and Exchange Commission (SEC) to settle a lawsuit related to its Gemini Earn program. The settlement agreement resolves a civil lawsuit filed against Gemini and Genesis a year ago, accusing the two companies of issuing and selling unregistered securities to retail investors through the Gemini cryptocurrency lending program.
