Gemini

2024

Arkham

when

Blockchain data provider Arkham Research disclosed on Friday wallets connected to Genesis Trading, the cryptocurrency lender under Digital Currency Group, transferred over 16,000 Bitcoin and 166,000 Ether.&nbsp; 
As Genesis Trading starts to pay its debts, this large transfer, valued at roughly $1.1 billion and $521 million respectively, indicates a possible change in its approach. The action follows a turbulent period for the business marked by notable financial strain following the fall of the market in 2022. 
Background of the Financial Turmoil 
The recent transfers are linked to Genesis Trading’s ongoing efforts to resolve a substantial debt from its 2022 collapse. The company’s financial difficulties were exacerbated by its involvement with the now-defunct Gemini “Earn” crypto credit platform.&nbsp; 
Gemini, which had used Genesis to manage yields on customer deposits, saw its operations severely impacted when Genesis loaned these assets to the bankrupt Three Arrows Capital hedge fund. 
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 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:… <a href="https://t.co/5Jtxqx8mxT" target="_blank">pic.twitter.com/5Jtxqx8mxT</a>— Arkham (@ArkhamIntel) <a href="https://twitter.com/ArkhamIntel/status/1819375635539616132?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">August 2, 2024</a>
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In May, Gemini reported that it had fully reimbursed its Earn users. This development cleared the path for Genesis to address its remaining financial obligations. In its January 2023 court filing, Genesis listed over $3 billion in claims against its top creditors, including Gemini, Cumberland, and VanEck’s New Finance Income Fund.&nbsp; 
The Friday transaction indicates that Genesis might be making progress in repaying these creditors, signaling the potential conclusion of a challenging chapter for the crypto sector. 
Implications of the Transfers 
The massive cryptocurrency transfers are seen as a significant step towards settling Genesis Trading’s extensive liabilities. The company had previously disclosed having over 100,000 creditors and potentially up to $10 billion in liabilities.&nbsp; 
The direction of the funds from Friday’s transfers remains unclear, and Genesis has yet to provide a response to media inquiries. 
The situation is further complicated by the $1.1 billion promissory note issued by Genesis’ parent company, DCG, intended to address a substantial balance sheet shortfall caused by losses linked to Three Arrows Capital and Alameda Research.&nbsp; 
Additionally, New York Attorney General Letitia James has filed a civil suit against DCG, Genesis, and others, accusing them of fraudulent activities and deceptive practices related to $1 billion in trading losses. 
Genesis Trading’s recent actions highlight ongoing efforts to resolve its financial issues while dealing with the aftermath of the 2022 crypto market crisis. The substantial transfer of assets suggests progress in its restructuring and repayment process. However, uncertainties remain regarding the final resolution of its liabilities and legal challenges. 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 Also Read: <a href="https://www.cryptotimes.io/2024/07/16/genesis-trading-transfers-600-btc-to-coinbase-amid-bankruptcy/" target="_blank" rel="noreferrer noopener">Genesis Trading Transfers 600 BTC to Coinbase Amid Bankruptcy</a> 
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Genesis Trading Moves $1.6B in Crypto Assets for Restructuring

The Crypto Times

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