- The defunct crypto lending firm used the funds to purchase 32,041 Bitcoins.
- Genesis settled with the SEC for $21 million recently for its Gemini Earn program.
Genesis Global Capital announced a successful sale of its Grayscale Bitcoin Trust (GBTC) shares. The defunct crypto lending firm used the funds to purchase 32,041 Bitcoins. The corporation is making this move to appease its creditors and customers.
A total of over 36 million GBTC shares were sold out. The legal team representing Genesis recently filed paperwork in court to certify that this procedure has been completed. Genesis had already received approval from the New York bankruptcy court to sell its 36 million GBTC and other Grayscale Ethereum trust holdings, which were part of its Grayscale shares.
Reimbursing Creditors
The attorneys for the estate put the property’s worth in Grayscale stocks at around $1.6 billion when they reviewed the application. The current market value of the Bitcoins earned via this deal is about $2.2 billion.
With its massive Bitcoin stack in hand, Genesis has unveiled its first strategy. Distributing tokens to those who owe money to Gemini Earn is its primary function. Genesis settled with the U.S SEC for $21 million after being accused of marketing and selling unregistered securities via the Gemini Earn program. This refund plan is a consequence of that settlement. As part of the settlement procedure, the company’s regulatory difficulties are addressed and the creditor is reimbursed.
Genesis’ commitment to satisfying its financial responsibilities is shown by the funds acquired via the sale of GBTC shares. The ability to repay creditors is shown by the current value of the purchased Bitcoin. Genesis is making this effort as part of its strategy to fulfill customer promises while navigating the company’s bankruptcy processes.
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