Genesis sells GBTC Shares for 32,041 Bitcoins Amid bankruptcy

Genesis, a crypto lending company that went under bankruptcy, has sold its Grayscale Bitcoin Trust (GBTC) shares, and with the proceeds it purchased 32,041 bitcoins, according to a Bloomberg report on Friday.

Repaying creditors

The sale of GBTC shares transaction was completed on April 2, as per the report. Genesis was given the green light by a New York bankruptcy court on Feb. 15 to sell approximately 36 million GBTC shares and some other shares in two other Grayscale Ethereum trusts. When the request was made, the attorneys of the estate approximated the total value of the Grayscale shares at $1.6 billion. This consisted of almost $1.4 billion of the GBTC, $165 million of the Grayscale Ethereum Trust, and $38 million of the Grayscale Ethereum Classic Trust.

Also, the bitcoin held in GBTC shares at the current price of around $67,500 (as of today) is nearly $2.2 billion. Genesis has not yet revealed what they will do with their large Bitcoin asset, but they have informed about their plan to distribute the tokens among the Gemini Earn lenders as its first step.

The share sale comes after Digital Currency Group alleged that its subsidiary, Genesis, proposed to overpay its customers.

Coinbase exchange recently told the community that the sell-off was unlikely to have a big effect on the crypto market. Also, the crypto exchange believes that the funds would mostly stay within the crypto ecosystem which would make the overall market effect to be neutral.

Genesis agreed to pay a sum of $21 million to the U.S. SEC after being accused of promoting and vending unregistered securities through the Gemini Earn program.