Skip to content
NewsGenesisFTXBitcoin

Genesis Looks to Sell $1.4B in Bitcoin Trust - Market Crash Ahead?

Genesis wants to sell $1.4bn worth of GBTC. When FTX sold $1bn of its GTBC holdings, BTC crashed from $49K to $39K

Table of Contents

Genesis is seeking a judge's approval to sell $1.4 billion worth of the Grayscale Bitcoin Trust.

The bankrupt crypto lender filed a motion on Friday asking a judge to approve the sale of 36 million shares of the trust, which is worth around $1.4 billion.

9 million shares of the Grayscale Ethereum Trust and 3 million shares of Grayscale Ethereum Classic Trust are also on the chopping block.

If approved, the motion could add more selling pressure on Bitcoin and trigger another market sell-off. When FTX sold over $1 billion worth of GBTC holdings, Bitcoin's price plummeted from $49,000 to $39,000.

FTX to Repay Customers in Full, Abandons Exchange Relaunch
FTX is liquidating all its assets and abandoning its crypto exchange relaunch to repay its customers. FTT is down over 20%

In November, Genesis sued Gemini Trust to recover funds withdrawn by customers in the bank run that led to Genesis's bankruptcy.

In the lawsuit, Genesis claimed up to 230,000 users under the "Earn investing program" withdrew $689 million from its platform in 90 days before it filed for bankruptcy.

It is also argued that US bankruptcy laws allow for the clawback of withdrawals to enable fair distribution among creditors.

Genesis borrowed assets from Earn customers and re-invested the funds to pay interest to customers. Gemini served as the custodian that processed deposits and withdrawals, earning a cut from payments by Genesis to Earn users.

Crypto Lender Genesis Sues Gemini to Recover $689m of Customer Assets
Genesis Global is suing Gemini Trust for the $689 million withdrawn by 230,000 users 90 days before it filed for bankruptcy

Latest

What is the Fair Value of Bitcoin?

What is the Fair Value of Bitcoin?

According to two staff members of the European Central Bank, Bitcoin is still a harmful phenomenon with no inherent worth, even if it has been approved as an asset to be included in ETFs in the US. The OG cryptocurrency just crossed its two-year high today, sitting at $56,287

ETF Hype Pushes Ether to 2-Year Highs

ETF Hype Pushes Ether to 2-Year Highs

Anticipation for US spot crypto ETFs shifts focus to Ethereum, with investors eyeing Ether's outperformance over Bitcoin amid rising demand and potential legal challenges, despite regulatory hesitations and concerns over ecosystem centralization.