Genesis, a cryptocurrency lender that has filed for bankruptcy, has completed the transaction of 36 million shares of the Grayscale Bitcoin Trust (GBTC) they sold to resolve existing financial obligations.
This share transaction totaled $2.1 billion, was conducted on April 2nd, and was sold at $58.50 per share. It is meant to be used to settle debts with creditors by purchasing Bitcoin (BTC).
This sale follows the February approval from the US bankruptcy court, as GBTC shares were valued at $38.50 at the time.
Consequently, Genesis acquired 32,041 bitcoins at a rate of $65,685 per unit. The Bitcoin purchased then has a market value of about $2.18 billion.
Coinbase, the leading cryptocurrency exchange, has provided several updates regarding the GBTC sale and its possible impact on the market.
The analysis says that the money will probably flow within the crypto market, meaning that the market generally will not be affected.
The terms of Genesis’s bankruptcy plan provided them with two options for resolving creditor debt: either converting GBTC shares into Bitcoin for creditors or selling GBTC shares and distributing the cash received.
Ongoing Legal Challenges
The parent company of Genesis, Digital Currency Group, has pledged to meet its customers’ repayment obligations fully.
Although Genesis has succeeded in overcoming some legal obstacles, the company still has a long way to go in fighting legal problems.
The SEC has recently been involved in a settlement where a $21 million payment was made for the operations and the suspension of the Gemini Earn program.
Besides that, the court ruling enables the SEC to further its lawsuit against both Gemini and Genesis, where the allegations of unregistered securities sales through the Gemini Earn program are the main focus.
These developments highlight that the cryptocurrency industry will keep being scrutinized by regulators and face legal challenges.
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