According to Gemini Trust Co., Judge Sean Lane of the Southern District of New York has approved Genesis’ motion to sell Trust Assets. In a recent post on X (formerly Twitter), Gemini noted that the court had permitted it to begin monetization of the Initial Collateral it holds for the benefit of Earn users.
Earn Update: On February 14, Judge Lane approved Genesis’s Motion Authorizing Sale of Trust Assets. Pursuant to the bankruptcy court’s order approving the motion, Gemini is authorized to begin monetization of the Initial Collateral (30,905,782 shares of GBTC) it holds for the…
— GeminiTrustCo (@GeminiTrustCo) February 17, 2024
The approval will allow Gemini to return the specific digital assets they loaned to Earn users rather than an equivalent value in dollars or an alternative cryptocurrency. That is a step that Gemini considers important, noting that it will facilitate in-kind distributions to earn users. It implies that Earn users will receive the specific digital assets they loaned rather than an equivalent value in dollars or an alternative cryptocurrency.
It is essential to recall that Gemini halted the Earn program during a crypto market crash in November 2023. Its failure has spurred litigation between Genesis, Gemini, and Genesis’s parent company, Digital Currency Group.
Gemini embarked on a weekly update program to keep Earn users up-to-date about the litigation and settlement process. Judge Lane’s approval is part of the latest update Gemini released on February 16, 2024. Other parts of the update specified that Genesis filed a further Amended Plan and Memorandum in Support of Confirmation.
According to Gemini, the amended plan by Genesis reflects changes necessary to resolve potential objections to confirmation, including those by Gemini. The plan also makes clarifying adjustments on the interests of creditors, including Earn users.
Notwithstanding, Gemini noted that it would continue to review the Amended Plan to ensure that Earn users are protected. The crypto exchange also promised to make sure none of the changes in the Amended Plan would compel Gemini to oppose Plan confirmation.
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