Genesis Trading is said to have moved billions of dollars in recent days. This is likely because the company is trying to figure out how to pay its creditors while it restructures its finances.
A lot of Bitcoin and Ethereum have been sent to the crypto loan, which is currently going through bankruptcy. Genesis wallets have moved 32,256 BTC, which is worth about $2.12 billion, and 256,775 ETH, which is worth about $838 million, in the last three days.
Notably, these deals included significant transfers of 166,300 ETH ($521.1 million) and 16,600 BTC ($1.1 billion) in just one hour, which suggests that the assets are being moved around to pay off debts.
Genesis Plans Creditor Repayments
This action fits in with Genesis Trading’s plans to pay back its creditors while it restructures its finances.After the crypto exchange FTX went down in November 2022, The Trading started having legal and financial problems.
This caused the market to crash. Trading site was highly exposed, especially through its derivatives business. It lost access to crypto assets worth $175 million that were locked in an FTX trading account. Because of this, Genesis stopped payments and in January 2023, they filed for bankruptcy.
Genesis reached a significant $3 billion deal with New York in May 2023. The state said Genesis had scammed 230,000 investors through its Earn program. In October 2023, a bankruptcy judge in New York accepted a $175 million settlement between Genesis and FTX.
As part of the deal, the Trading company was released from several claims. The court gave the Trading company permission to give cash and cryptocurrency to its creditors, which may explain why assets have been moving around recently. It is estimated that these payments will cover about 77% of the total value of the claims.
Genesis’s asset sales and payments add to the growing list of supply shocks in the crypto market, which shows that the sector as a whole is unstable. The crypto market is still having trouble getting enough supply. The German government just sold 50,000 BTC, the exchange Mt. Gox is giving out BTC, and the U.S. government is about to sell BTC from its stash.
