According to breaking information, the court in the USA allowed the bankrupt cryptocurrency company Genesis to sell GBTC worth $ 1.3 billion.
Genesis, a bankrupt cryptocurrency lender, has been given permission by the bankruptcy court to begin selling approximately 35 million Grayscale Bitcoin Trust (GBTC) shares valued at over $1.3 billion. The move is part of Genesis' plan to compensate customers who lent it their digital assets.
Judge Sean Lane announced today that he will accept Genesis' request to convert the shares into Bitcoin or cash.
Genesis stated that this process will be carried out gradually with the help of a broker. In addition, Genesis plans to sell more than 11 million shares worth over $200 million in two Grayscale Ethereum Trusts, according to a Feb. 2 court filing.
Genesis' lawyer Sean O'Neal stated that the current value of Grayscale shares is approximately $1.6 billion.
Jeffrey Saferstein, an attorney with Digital Currency Group, expressed concern that the parent company's Grayscale shares could be divested too quickly, which could depress prices and minimize potential recoveries for Genesis creditors.
*This is not investment advice.