Genesis filed a motion on Wednesday, and a judge granted it, allowing the bankrupt lender to sell its shares of Grayscale’s bitcoin ETF (GBTC).
The motion does not establish a deadline and gives the debtors permission to start selling the shares whenever they choose. Additionally, US bankruptcy judge Sean Lane denied Digital Currency Group’s request for a consultation regarding the shares.
Judge Lane stated during the hearing that DCG is “not in an ideal position” to provide “advice untainted by its own interest.” But he went on to say that he didn’t blame DCG for protecting its own interests.
As part of his approval, Judge Lane stated that the debtors might exchange the shares for cash or bitcoin. According to a Genesis attorney, the shares of Grayscale are worth $1.6 billion.
The bankrupt lender, through Chapter 11, can determine how to sell the assets and can collaborate with a broker to make judgments regarding the sales, according to the hearing on Wednesday.
Genesis has submitted a motion to sell about $1.3 billion in GBTC along with its holdings in the Ethereum Trust (ETHE) and Ethereum Classic Trust (ETCG) of Grayscale.
The bankrupt lender possesses 35 million shares of GBTC, eight million shares of ETHE, and almost $3 million of ETCG, according to a filing made early in February.
The timing of the move coincided with the Securities and Exchange Commission’s approval of numerous spot bitcoin exchange-traded funds in early January, according to the debtors’ attorneys. Digital Currency Group filed an objection to the confirmation plan after Genesis’s original filing. The brand’s parent company is DCG.
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