New York Attorney General Letitia James has secured a billion settlement with bankrupt cryptocurrency firms Genesis Global Capital, Genesis Asia Pacific, and Genesis Global Holdco. The settlement, which requires bankruptcy court approval, will establish a victims’ fund to compensate over 29,000 New Yorkers who invested more than .1 billion through the Gemini Earn program. […]
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Accidental Bitcoin Transfer Pushes Satoshi Nakamoto’s Genesis Wallet Over 100 BTC
Based on the latest data, the well-known Genesis address owned by Satoshi Nakamoto now holds over 100 BTC after someone inadvertently sent 0.10754671 BTC, valued at ,211, to the wallet. The current value of the wallet, which has never been spent, is estimated at .75 million. Another Unintentional Bitcoin Transaction Pushes up the Value of […]
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Court Approves Crypto Lender Genesis’ $3 Billion Payout to Customers
Crypto lender Genesis Global obtained court approval Friday to return approximately billion to its customers as part of its bankruptcy liquidation. U.S. Bankruptcy Judge Sean Lane approved Genesis’ Chapter 11 plan, overruling an objection from its equity owner, Digital Currency Group (DCG), which argued that repayments should be based on January 2023 cryptocurrency values. […]
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Genesis Digital Assets to Launch Flare Gas Powered Bitcoin Mining Site in Argentina
Genesis Digital Assets, a leading digital miner, has partnered with YPF Luz, an Argentine power company, to receive power from a flare gas installation to operate a bitcoin mining site in Argentina. The data center facility, in the Bajo del Toro thermoelectric plant, will host 1,200 bitcoin miners. Genesis Digital Assets to Operate Flare Gas […]
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Stepn Partners With Adidas to Issue Genesis Sneakers NFTs
Stepn, a lifestyle and move-to-earn application, partnered with Germany-based apparel company Adidas to issue the Genesis Sneakers NFT collection. The collection, which marks the start of a one-year collaboration between these organizations, comprises 1,000 NFTs inspired by Adidas’ “most iconic” running silhouettes and cobranded by the two companies. Stepn Teams With Adidas to Issue Co-Branded […]
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Genesis Acquires Over 32,000 BTC After Offloading GBTC Shares
Embattled crypto lender Genesis Global Capital has continued to ramp up efforts to pay up creditors after filing for bankruptcy protection in January 2023. As part of these efforts, Genesis has now reportedly sold off the entirety of its Grayscale GBTC holdings to acquire a substantial amount of Bitcoin in order to implement its repayment strategy.
Genesis Converts GBTC Shares To Bitcoin In Preparation For Debt Settlement
According to a Friday report by Bloomberg Law, Genesis finalized the sale of its 36 million GBTC shares, as revealed by the company’s lawyers in a court filing on April 2. Genesis had initially received legal approval to liquidate its GBTC holdings on February 2 with each unit share valued at .50. However, court documents showed that the current price of GBTC as at the time of sale on April 2 was .50 resulting in a total sale price of .1 billion.
Bloomberg’s report disclosed that the bankrupt crypto lender then used these proceeds to purchase 32,041 Bitcoin at a market price of ,685, which will be distributed to creditors as part of its repayment plan, especially those who were previously enrolled in the Gemini Earn program.
These recent transactions align with Genesis’s bankruptcy plan which allows the conversion of GBTC shares to either Bitcoin or direct cash for the settlement of its existing debt. Currently, the crypto lender owes .5 billion to creditors and will commence repayment following court approval.
However, Genesis faces fierce opposition from its parent company, Digital Currency Group (DCG), over its proposed repayment plan. In a petition filed in February, DCG argues that its bankrupt subsidiary looks to settle creditors’ claims at amounts higher than their respective entitlement.
DCG believes such a repayment strategy violates the Bankruptcy Code and is “unfair” since it will only benefit senior creditors who will largely gain from an appreciation in Genesis’s crypto assets value while equity holders and company stakeholders are left in unfavorable positions.
Founded in 2013, Genesis is one of the prominent crypto firms to file for bankruptcy. Its insolvency is largely linked to the sudden collapse of the defunct crypto exchange FTX.
Bitcoin Price Overview
In other news, Bitcoin gained by 2.55% in the last day to reach a price of ,339. Such price gain would be encouraging to investors especially following the token’s overall negative performance in the past week. On higher timeframes, BTC largely remains largely bullish as anticipation continues to build ahead of the halving event on April 19. The fourth halving in Bitcoin’s history is expected to reduce the mining reward from 6.25 BTC to 3.125 BTC.
BTC trading at ,314 on the daily chart | Source: BTCUSDT chart on Tradingview.com
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Genesis Sells Grayscale Shares, Buys $2.17 Billion in Bitcoin for Customer Reimbursement
Following Genesis Global Capital’s receipt of authorization to divest its Grayscale fund holdings, reports disclose that Genesis executed the sale last week. The proceeds were then used to procure 32,041 bitcoin, aimed at reimbursing its clientele. Genesis Liquidates Grayscale GBTC Holdings According to Bloomberg Law, court filings dated April 2 reveal that Genesis liquidated approximately […]
Bitcoin News
Unlocking Crypto History: 2,000 ETH From Ethereum’s Genesis Days Suddenly Moved
In recent weeks, Bitcoin.com News has chronicled the significant number of dormant bitcoin addresses that have sprung to life in March after years, if not a decade, of inactivity. Similarly, we’ve observed a resurgence of activity from older ethereum addresses. This Saturday highlighted a noteworthy event: an individual who took part in the Ethereum initial […]
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Crypto Lender Genesis Requests US Bankruptcy Court to Approve ‘Settlement Principle’
The insolvent cryptocurrency lender, Genesis, has petitioned a U.S. bankruptcy court to approve a proposed settlement principle announced on Feb. 28. According to an update, if the court approves the settlement, Genesis Earn users will receive all of their digital assets back in kind. The bankruptcy court is scheduled to consider Genesis’ request to approve […]
Bitcoin News
Crypto Lender Genesis Agrees to $21 Million SEC Fine, Funds to Await Bankruptcy Claim Settlements
Genesis Global Capital has settled with the U.S. Securities and Exchange Commission (SEC) and agreed to pay a million civil penalty. The SEC further disclosed that the regulator will “not receive any portion of the penalty until after payment of all other allowed claims by the bankruptcy court, including claims by retail investors in […]
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