Gemini Trust Co. disclosed that Genesis has petitioned the U.S. Bankruptcy Court for permission to sell trust assets. This includes a plan to liquidate its holdings in two Grayscale Ethereum trusts, which are investment vehicles offering exposure to cryptocurrencies.
The court filing, made late Friday, outlines Genesis’s request to convert 30,905,782 shares of Grayscale Bitcoin Trust into cash, with Gemini acting to facilitate the transaction. An advanced hearing has been requested for February 8 to discuss the motion.
Moreover, Genesis recently concluded a settlement with the U.S. Securities and Exchange Commission (SEC) regarding the now unused. Gemini Earn lending program, agreeing to a $21 million fine chance upon the full repayment of customers amid its bankruptcy proceedings.
This settlement follows allegations from the SEC that Genesis and Gemini engaged in the illegal sale of securities through their collaborative crypto lending initiative. The agreement, which avoids admission of wrongdoing by Genesis, aims to center the company’s focus on reimbursing its customers and creditors.
The firm is implementing a liquidation program through which customers will be compensated in cash or cryptocurrency depending on the kind of deposit made under the Earn program. This approach is one of the strategies that are part of the realignment efforts that Genesis has implemented to ensure that the initiatives in question have the necessary support from the parties concerned.
The court hearing of the proposed bankruptcy plan will occur on February 14, an important development in the company’s attempts to resolve its financial problems and meet its customer obligations.
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