Genesis completed conversion of GBTC shares back to 2.2 billion USD in Bitcoin

Bankrupt lending company Genesis sold and liquidated all of its GBTC shares, using the proceeds to buy back 32,041 Bitcoins.

According to documents submitted to the court, lending company Genesis announced that it has completed the process of selling all Grayscale Bitcoin Trust (GBTC) shares it holds, then using the proceeds to buy back 32,041 Bitcoin, worth 2 .2 billion USD at the time of writing.

The liquidation process of GBTC began in February after being authorized by the bankruptcy court and was completed on April 2. Genesis said it will use the proceeds to fully compensate users participating in the Earn savings program of the Gemini digital currency exchange.

On-chain data statistics unit Arkham Intelligence also announced two Bitcoin wallet addresses holding $2.2 billion in Genesis BTC.

As reported, Genesis is a lending company owned by Digital Currency Group, which also owns Grayscale. During the cryptocurrency industry's liquidity crisis in 2022, Genesis suffered heavy losses from the bankruptcy of Three Arrows Capital, then was forced to make shady internal transactions with Digital Currency Group to stay afloat. Maintain a stable face.

However, in November of the same year, when the FTX exchange collapsed, Genesis's financial vulnerability was clearly exposed and also implicated users of the Gemini exchange, the platform that lent money to Genesis. Genesis in January 2023 had to declare bankruptcy, of which Gemini was the largest creditor with more than 900 million USD in assets of Earn users.

Gemini then filed a lawsuit against Digital Currency Group and its head, Mr. Barry Silbert, exposing the wrongdoings of this group of companies. The case even attracted the attention of the New York State Attorney General's Office (USA) and the US Securities Commission (SEC). Genesis then agreed to pay fines of $8 million and $21 million to these regulators, respectively.
However, Digital Currency Group is still under investigation.

Besides Genesis, FTX exchange in January 2024 liquidated more than 1 billion USD of GBTC shares just a few days after this product was converted into a Bitcoin spot ETF.

As has been reported recently, GBTC continues to be the driving force for selling large amounts of Bitcoin in the cryptocurrency market, as investors gradually convert positions to other ETFs with low annual management fees. more, or completely exit the fund after years of suffering losses before it was approved to become an ETF.