Crypto lender transactions are likely tied to creditor repayments after bankruptcy.
Key Takeaways
- Genesis Trading transferred $1.5 billion in BTC and ETH, causing price drops.
- The transfer likely marks the beginning of creditor repayments following Genesis' bankruptcy.
Genesis Trading moved over $1.5 billion in Bitcoin (BTC) and Ethereum (ETH) in the past hour, according to an X post by Arkham Intelligence. As a result, BTC fell 2.2% in the last hour, while ETH registered a 2.5% correction in the same period. The transactions amounted to 16,600 BTC and 166,300 ETH, and are likely to start the in-kind repayments to creditors.
BREAKING: GENESIS MOVING $1.5B BTC + ETH FOR CREDITOR REPAYMENTS
Wallets linked with Genesis Trading have moved 16.6K BTC ($1.1B) and 166.3K ETH ($521.1M) in the past hour – likely for in-kind repayments to creditors.
BTC: bc1qmetf6pu6ghr6fv92209sw5x9t5999562t8wmux
ETH:… pic.twitter.com/5Jtxqx8mxT— Arkham (@ArkhamIntel) August 2, 2024
Genesis was the main institutional lender in crypto behind the “earn” programs of many companies, such as the exchange Gemini, and was a part of the Digital Currency Group (DCG), which also has Grayscale under its umbrella.
However, after the Terra collapse in 2022 that triggered the fall of entities such as Three Arrows Capital, Genesis was met with liquidity issues and failed its customers. In January 2023, the company filed for bankruptcy. The company won a case in May to return $3 billion to customers, which was followed by a $2 billion settlement with New York Attorney General Letitia James.
Moreover, Genesis and Gemini faced a legal suit by the US Securities and Exchange Commission (SEC) for allegedly selling unregistered securities through Gemini Earn. In another settlement, Genesis agreed to pay $21 million to the regulator.
In April, Genesis Trading redeemed over 32,000 BTC, valued at approximately $2.1 billion, during its bankruptcy process, following a settlement that returned $2 billion to nearly 232,000 Gemini customers.
