Gemini Trust Co announced on Saturday that Genesis, a crypto lender, has taken a step by filing a motion in U.S. Bankruptcy Court. This motion seeks approval for the sale of trust assets and the ability to monetize its interests in two Grayscale Ethereum trusts, which are securities offering investors exposure to cryptocurrency.
The motion, submitted by Genesis late on Friday, specifically requests authorization for Gemini to monetize the initial collateral, consisting of 30,905,782 shares of Grayscale Bitcoin Trust, as outlined by Gemini.
Genesis has sought an expedited hearing on this motion, scheduled for February 8, as indicated in Gemini’s statement.
Earlier this week, Genesis reached a settlement in a lawsuit with the U.S. Securities and Exchange Commission related to its discontinued Gemini Earn lending program.
Undeterred, Genesis is now executing a liquidation plan designed to repay customers either in cash or cryptocurrency, depending on the types of currency they deposited in the Earn program.
The Earn program came to a halt during the crypto market crash in November 2023, leading to legal disputes involving Genesis, Gemini, and Genesis’s parent company, Digital Currency Group.
