Cryptocurrency exchange Gemini declared bankruptcy for Genesis

05.02.2024

Cryptocurrency exchange Gemini Trust Co said Saturday that crypto lender Genesis has filed a motion with the U.S. Bankruptcy Court to allow the sale of trust assets and seek permission to monetize its stakes in two Grayscale Ethereum trusts, securities that provide investors with a way to invest in cryptocurrencies.

The motion filed by Genesis on Friday seeks Gemini’s permission to monetize the initial pledge of 30,905,782 shares of Grayscale Bitcoin Trust, Gemini said.

Genesis has requested an expedited hearing on the motion for Feb. 8, Gemini said in a statement.

This week, Genesis settled a lawsuit by the U.S. Securities and Exchange Commission over its defunct Gemini Earn loan program.

Genesis is moving forward with a liquidation plan that aims to pay customers in cash or cryptocurrency, depending on the type of currency they invested in the Earn program.

The Earn program was halted during the November 2023 cryptocurrency market crash and its failure sparked litigation between Genesis, Gemini and Genesis’ parent company, Digital Currency Group.