The assets held by Genesis, a subsidiary of Digital Currency Group, include shares of Grayscale Bitcoin Trust (GBTC) worth approximately $1.4 billion. The assets also include shares of Grayscale Ethereum Trust and Grayscale Ethereum Classic Trust worth approximately $165 million and $38 million, respectively.
In an effort to speed up the process, Genesis filed a separate request to shorten the relevant deadlines. The move aims to ensure that the sale request will be addressed at the bankruptcy court's next hearing on Thursday, February 8.
These GBTC shares were the first collateral that Genesis transferred to Gemini.
This was part of Gemini's Earn program, along with some shares acquired through the bankruptcy of Three Arrows Capital. Genesis also has a legal claim for an additional 31,180,804 shares (worth approximately $1.2 billion) that were pledged to Gemini but never transferred.The ownership of these shares is currently disputed in court.In a statement on its website, Gemini described the filing as "an important step forward." This step follows the approval of the Grayscale Bitcoin Trust (GBTC) as an exchange-traded product (ETP) on January 10.
Earlier this week, Genesis agreed to pay a $21 million fine to the US Securities and Exchange Commission (SEC). The settlement will be paid from funds remaining after the bankruptcy and aims to resolve the agency's lawsuit against the company for operating the Gemini Earn program.
