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<p class="is-style-lead">Genesis Trading has moved billions of dollars in recent days, potentially to manage creditor repayments as part of its financial restructuring efforts.</p>
<p>The crypto lender, which is navigating bankruptcy, has reportedly transferred substantial amounts of Bitcoin (<a href="https://crypto.news/price/bitcoin/" data-type="link" data-id="https://crypto.news/price/bitcoin/" rel="noopener noreferrer nofollow">BTC</a>) and Ethereum (<a href="https://crypto.news/price/ethereum/" data-type="link" data-id="https://crypto.news/price/ethereum/" rel="noopener noreferrer nofollow">ETH</a>) in recent days.&nbsp;</p>
<p>Wallets associated with Genesis have <a href="https://x.com/ArkhamIntel/status/1819375635539616132" target="_blank" rel="noopener noreferrer nofollow">reportedly</a> moved 32,256 BTC, valued at approximately $2.12 billion, and 256,775 ETH, worth about $838 million, over the past three days.&nbsp;These transactions included large transfers of 16,600 BTC ($1.1 billion) and 166,300 ETH ($521.1 million) within a single hour, suggesting the assets are likely being redistributed to satisfy creditor claims.</p>
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   <p lang="en" dir="ltr">Genesis Trading has transferred 32,256 <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$BTC</a>($2.12B) and 256,775 <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$ETH</a>($838M) to multiple addresses in the past 3 days and may be undergoing bankruptcy proceedings to repay debts.<br><br>And <a href="https://twitter.com/hashtag/GenesisTrading?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#GenesisTrading</a> transferred 13,291 <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$BTC</a>($830.7M) to <a href="https://twitter.com/hashtag/Coinbase?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#Coinbase</a> between Jun 12 and Jul 15, during… <a href="https://t.co/EpLdn5PUJn" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/EpLdn5PUJn</a></p>— Lookonchain (@lookonchain) <a href="https://twitter.com/lookonchain/status/1819386260676661292?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">August 2, 2024</a>
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<p>This activity is part of Genesis Trading’s efforts to manage creditor repayments amid its ongoing financial restructuring.</p>
<p>You might also like: <a href="https://crypto.news/morgan-stanley-to-allow-advisors-to-offer-bitcoin-etf-investments/" rel="noopener noreferrer nofollow"> Morgan Stanley to allow advisors to offer Bitcoin ETF investments </a></p>
<h2 class="wp-block-heading" id="the-genesis-of-all-the-genesis-trading-troubles">The genesis of all the Genesis Trading troubles&nbsp;</h2>
<p>Genesis Trading’s legal and financial troubles started with the collapse of the crypto exchange <a href="https://crypto.news/tag/FTX/" target="_blank" rel="noopener noreferrer nofollow">FTX</a> in November 2022, which led to market contagion.&nbsp;</p>
<p>Genesis was heavily exposed, mainly through its derivatives business, which <a href="https://crypto.news/bankruptcy-judge-approves-175-million-settlement-between-ftx-and-genesis-global-trading/" target="_blank" rel="noopener noreferrer nofollow">lost access</a> to $175 million worth of crypto assets locked in an FTX trading account​. Consequently, Genesis halted withdrawals and filed for bankruptcy in January 2023.</p>
<p>In May 2023, Genesis reached a substantial $3 billion settlement with New York over allegations of <a href="https://crypto.news/genesis-sec-settlement-gemini-earn-lawsuit/" target="_blank" rel="noopener noreferrer nofollow">defrauding</a> 230,000 investors via its Earn program. In October 2023, a New York bankruptcy judge approved a $175 million settlement between Genesis and FTX, including the expulsion of multiple claims against Genesis​.&nbsp;</p>
<p>The court authorized Genesis to distribute cash and crypto to its creditors, which might explain the movement over the last three days. The repayments <a href="https://crypto.news/genesis-global-can-distribute-billions-to-creditors/" target="_blank" data-type="link" data-id="https://crypto.news/genesis-global-can-distribute-billions-to-creditors/" rel="noopener noreferrer nofollow">should cover</a> approximately 77% of the total claims’ value.</p>
<p>Genesis’s asset liquidations and settlements add to the growing list of supply shocks for the crypto market, reflecting broader instability in the sector.&nbsp;</p>
<p>With the recent <a href="https://crypto.news/mt-gox-and-the-german-government-sunk-the-crypto-market/" target="_blank" data-type="link" data-id="https://crypto.news/mt-gox-and-the-german-government-sunk-the-crypto-market/" rel="noopener noreferrer nofollow">sale</a> of 50,000 BTC by the German government, distributions from bankrupt exchange Mt. Gox, and impending sales from the U.S. government’s BTC stash, the crypto market continues to face supply disruptions.</p>
<p>You might also like: <a href="https://crypto.news/bitcoin-miners-expect-btc-price-rally-experts-say/" rel="noopener noreferrer nofollow"> Top Bitcoin miners expect a BTC price rally: experts </a></p>

Genesis transfers $3b worth of crypto amid bankruptcy

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