Bankrupt cryptocurrency company Genesis Global Trading has received authorization to sell shares of its convertible bitcoin-ETF to Grayscale Investments, Bloomberg reports.
The authorization will allow Genesis to sell more than 35 million #shares of the crypto fund, an asset valued at more than $1.3 billion.
In addition to the #bitcoin-ETF shares, Genesis also plans to sell securities of two Grayscale Ethereum Trusts. These securities amount to 11 million shares worth more than $200 million.
The approval comes at a time when Genesis is facing the challenge of compensating customers affected by its collapse. With assets totaling $1.6 billion, the company intends to use these funds to fulfill its compensation obligations.
Genesis has faced legal challenges, including a protest filed by a subsidiary of Digital Currency Group Holding. The protest alleged that Genesis was offering customers more compensation than required by law.
It is worth noting that Genesis has reached a settlement with US authorities, settling a lawsuit filed by a top New York City official.
Earlier, Genesis and the U.S. Securities and Exchange #Commission signed an agreement under which Genesis agreed to pay a $21 million fine.
