Gemini

Bitcoin

Grayscale Bitcoin Trust

Billion

In a significant move to address its financial obligations, the bankrupt cryptocurrency lending firm Genesis has converted roughly 36 million shares of the Grayscale Bitcoin Trust (GBTC) into Bitcoin, gearing up to settle its debts with creditors.
This conversion was executed on April 2, with the GBTC shares valued at approximately $58.50 each at the time of liquidation, according to Bloomberg.
This decision comes after the <a href="https://etfs.grayscale.com/gbtc" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">GBTC</a> share price witnessed a substantial 50% increase since Genesis initially received approval from the U.S. bankruptcy court for the share sale back in early February when shares were valued at $38.50.
The liquidation of GBTC shares culminated in a $2.1 billion revenue for Genesis, which it used to purchase 32,041 Bitcoin at $65,685 per Bitcoin on the same day.
This purchase is aimed at fulfilling the firm’s obligations towards its creditors, with the acquired Bitcoin currently valued at around $2.18 billion.
The cryptocurrency community has been closely monitoring this large-scale transaction, concerned about its potential impact on the market.
Coinbase, however, has offered reassurances, suggesting that the move is likely to have a neutral effect on the market as the funds remain within the cryptocurrency ecosystem.
This is part of Genesis’s bankruptcy plan, which permits the firm to either directly convert the GBTC shares into Bitcoin for creditors or sell them and distribute the proceeds.
READ MORE: <a href="https://www.cryptointelligence.co.uk/dogwifhood-wif-braces-for-explosive-price-rally-after-binance-tweet-sparks-listing-speculation/" data-wpel-link="internal" rel="noopener noreferrer nofollow">DogWifHood (WIF) Braces for Explosive Price Rally After Binance Tweet Sparks Listing Speculation</a>
This development follows an assertion by the Digital Currency Group that its subsidiary, Genesis, is committed to repaying its customers beyond their due entitlements.
Furthermore, Genesis recently announced a settlement agreement with the SEC, agreeing to a $21 million payment to resolve a civil lawsuit related to its operations, including the temporary suspension of withdrawals from Gemini Earn following the FTX bankruptcy, citing market turmoil and liquidity challenges.
Genesis’s financial troubles became more pronounced after the SEC’s lawsuit led to its bankruptcy filing earlier last year.
Additionally, a recent court ruling has allowed the SEC’s lawsuit against Gemini and Genesis to proceed, dismissing motions by both companies to dismiss the lawsuit, which involves allegations of selling unregistered securities through the Gemini Earn program.
This legal development underscores the ongoing challenges and regulatory scrutiny facing the cryptocurrency industry.
To submit a <a href="https://www.cryptointelligence.co.uk/category/press-releases/" data-wpel-link="internal" rel="noopener noreferrer nofollow">crypto press release (PR)</a>, send an email to <a href="mailto:sales@cryptointelligence.co.uk" rel="noopener noreferrer nofollow">sales@cryptointelligence.co.uk</a>.

Genesis Converts $2.1 Billion Worth of GBTC Shares into Bitcoin to Settle Debts Amid Legal Challenges

Crypto Intelligence

Другие статьи, опубликованные 8 апр. 2024 г.

Bitcoin Up 3.5% To $71,700, Pushing Ethereum And Crypto Stocks Higher

New Development on Binance Executive Detained in Nigeria

Crypto Q1 Report Highlights 300% Meme Coin 'Renaissance' And 'Major Step' For Ethereum

⏰ Act Fast! Join the Crypto Bull Run Before it’s Too Late!

Swole Doge (SWOLE) Poised for 3,500% Rally in April After Surging 200% in One Day – Will It Catch...

Crypto Shakeup: FTX’s $2 Billion SOL Liquidation Sends Shockwaves Through Market

Join our free newsletter for daily crypto updates!