Genesis, a bankrupt crypto lending firm, has reportedly begun moving millions of dollars worth of Ethereum (ETH) assets. According to data from the digital asset deanonymizing platform Arkham, a crypto wallet recently received 114,503 ETH valued at nearly $360 million from an address associated with Genesis Trading: Bankruptcy Distribution.
Arkham also noted that while the receiving wallet may potentially belong to Genesis, there is a “lower confidence prediction” attached to this claim. Over the weekend, the same wallet transferred 5,000 ETH, worth approximately $13 million, to a deposit address linked to the institutional crypto prime brokerage FalconX. As of now, the wallet still holds a substantial $424.74 million worth of Ethereum.
Genesis first faced liquidity issues back in November 2022, leading to the suspension of withdrawals due to the collapse of crypto hedge fund Three Arrows Capital. Subsequently, the lender filed for bankruptcy in early 2023. The situation escalated when the New York State Attorney General Letitia James filed a lawsuit alleging that Digital Currency Group (DCG), Genesis, and the crypto exchange Gemini attempted to conceal losses totaling over $1.1 billion and misled investors.
In response to the lawsuit, more investors came forward, prompting James to revise the alleged losses to over $3 billion. In May, a US bankruptcy court approved Genesis Global’s liquidation plan, aiming to return around $3 billion to its creditors. Following this, James announced a $2 billion settlement with the firm.
Recently, Genesis initiated the distribution of approximately $4 billion in digital assets and cash to its creditors. The ongoing movement of Ethereum assets by Genesis signifies a crucial phase in the bankruptcy proceedings and the efforts to resolve the financial obligations to stakeholders.
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