Bankrupt crypto lender Genesis Trading transferred 27,500 ether to one wallet on August 2 in Asian trading hours, worth about $87.09 million. It also moved 12,500 ether to another address, worth approximately $39.59 million, WuBlockchain posted on X. The bankrupt company could be executing liquidation procedures.
Genesis Trading transferred 27,500 ETH to the address starting with 0xcbCF at 9:43 UTC+8 today, worth about $87.09 milliom, and transferred 12,500 ETH to the address starting with 0x72FE, worth about $39.59 million, suspected of executing bankruptcy liquidation procedures.…
— Wu Blockchain (@WuBlockchain) August 2, 2024
The data is from Arkham Intelligence. The transfers are worth a total of $126 million. On July 31, the company’s crypto wallet moved ether with an estimated value of $31.61 million.
Genesis transferred BTC worth over $719m in the last two months
The wallet, designated “Genesis Trading,” transferred Bitcoin worth over $719 million in June and July. This was mainly in 500-700 Bitcoin transactions. This is evidence of a possible Genesis Ether liquidation.
In October 2023, NY Attorney General Letitia James announced a large-scale lawsuit against Genesis Global and its affiliates. Genesis, Gemini Trust Company, and Digital Currency Group were accused of defrauding investors of more than $1 billion. Allegedly, Gemini had known Genesis’ loans were not sufficiently secured and that they were concentrated with the bankrupt Alameda Research.
Today’s substantial crypto transfers follow a settlement reached between Genesis and the state of New York. The firm has to pay investors who lost money from its Earn program $3 billion. This is the biggest settlement against a crypto firm in the state’s history. The NY Attorney General also announced intentions to increase crypto industry regulation.
Allegedly, Genesis’ Earn program defrauded 230,000 investors. The company failed to disclose the risks associated with the program.
Clouds thicken for the struggling company
Other interesting news precedes the possible Genesis Ether liquidation. Bankless Times reported in January that New York’s Department of Financial Services settled with Genesis. Under the settlement, the company was ordered to pay an $8 million fine and stop operating.
The department made this announcement after an audit revealed shortfalls in the inspection of entities during the BitLicense application process. According to the Comptroller, the department had not examined licensees as regularly as required.
The authority reached the settlement with Genesis Global after it emerged they had not complied with New York’s virtual currency and cybersecurity laws.
