Genesis Trading, currently navigating bankruptcy proceedings, has moved 40,000 ETH, $126.8 million, to two separate wallets, signaling possible bankruptcy liquidations.
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
Per Arkham Intelligence data, a crypto wallet linked to Genesis Trading, transferred 27,500 ETH to the address starting with 0xcbCF. The transfers were worth about $87.09 million.
At about the same time, Genesis-linked wallet also sent 12,500 ETH to another address starting with 0x72FE, worth $39.59 million. The transfers occurred in the early Asia hours on Friday.
This comes two days after the Genesis crypto wallet moved 9644.4 ETH, worth approximately $31.61 million, on 31st July.
The Genesis Trading-labeled wallet has transferred more than 12,600 Bitcoin (BTC) worth around $719.9 million through June-July, mainly in transactions of 500 to 700 BTC.
Genesis Transfers Aim to Maximize Recoveries for Defrauded Investors
The massive Bitcoin and Ethereum transfers follow a settlement that Genesis reached with the state of New York in May. According to the settlement, Genesis is required to pay $2 billion to investors defrauded through its Earn program.
The $2 billion settlement is apparently the largest against a crypto firm in New York state history. As a result, the NY Attorney General also noted that it plans to increase oversight and regulation of the digital assets industry which has secured more than $2.5 billion from predatory crypto platforms to date.
Genesis succumbed to the lawsuit that accused the company of defrauding 230,000 investors, including NY residents, through its Earn program. Apparently, the company failed to disclose the associated risks with the Earn program.
The lawsuit was against Genesis, the Digital Currency Group, its CEO Barry Silbert, and former Genesis CEO Soichiro Moro.
Additionally, the NY Attorney General office also filed a lawsuit against former Celsius CEO Alex Mashinsky for allegedly hiding the platform’s “dire financial condition.”
Mashinsky is currently facing criminal charges related to securities fraud, wire fraud, and conspiracy to commit fraud. His trial is expected to commence in January 2025.
