Grayscale, DCG stand against Genesis plan to liquidate $1.6 billion in trust shares

5 months ago

Crypto steadfast Digital Currency Group (DCG) and Grayscale objected to bankrupt lender Genesis‘ determination to divest its assets, including Grayscale’s Bitcoin Trust (GBTC), Grayscale Ethereum Trust (ETHE), and Grayscale Ethereum Classic Trust (ETCG), shares worthy astir $1.6 billion, according to caller tribunal filings.

Grayscale’s objection

In its tribunal filing, Grayscale stated that it could not beryllium compelled to redeem immoderate shares astatine the Debtors’ behest due to the fact that it had not received anterior announcement astir this development, nor was it an authorized subordinate empowered to redeem them.

According to the firm:

“GBTC Shares, ETHE Shares, and ETCG Shares (collectively, the “Trust Shares”) constituting “restricted securities” cannot beryllium sold, assigned, oregon different disposed of without Grayscale’s anterior written consent, which whitethorn beryllium provided oregon withheld successful its sole discretion.”

The crypto institution continued that complying with Genesis’ petition mightiness undermine its quality to guarantee compliance with national securities laws and regulations.

As such, Grayscale respectfully requested the Court to contradict the information of the question seeking to nullify its consent rights and the authorized subordinate requirements. The steadfast further emphasized the request to undertake its modular process to guarantee compliance with applicable laws, including national and authorities securities laws.

Meanwhile, Grayscale clarified that it takes nary presumption connected whether Genesis should beryllium allowed to merchantability the assets and has nary intent to hold oregon obstruct the sales.

‘No merit’

On its part, DCG argued that Genesis’s motives for selling the assets “have nary merit.”

“Given the uncertainty astir the Debtors’ Amended Plan and erstwhile distributions to creditors mightiness really occur, determination appears to beryllium nary contiguous request for the alleviation requested by the Debtors,” DCG lawyers wrote.

The plus absorption steadfast advised delaying immoderate plus merchantability until the Debtors’ Amended Plan proceeding concludes. However, if the Court favors the motion, DCG urges the assignment of a specialized broker for these assets and recommends consultation earlier immoderate income occur.

Last week, DCG objected to the support of its Genesis bankruptcy program due to the fact that it overcompensated creditors astatine its detriment,

The station Grayscale, DCG basal against Genesis program to liquidate $1.6 cardinal successful spot shares appeared archetypal connected CryptoSlate.

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