A cryptocurrency wallet associated with Genesis Trading has transferred approximately $720 million worth of Bitcoin to the Coinbase exchange over the past month, pointing to potential liquidations.
The wallet has moved more than 12,600 Bitcoin, equivalent to approximately $719.9 million, in the last 30 days, according to data from Arkham Intelligence.
Notably, these transactions predominantly involved transfers of 500 to 700 BTC.
Genesis Wallet Holds 33,356 BTC
The wallet bearing the Genesis Trading label has a standing balance of 33,356 Bitcoin, which represents a significant decrease from its holdings of over 46,000 BTC a month ago on June 12.
The timing of these multimillion-dollar Bitcoin transfers comes two months after Letitia James, the attorney general for the State of New York, announced a settlement with Genesis Trading.
The settlement required Genesis to pay $2 billion to defrauded investors involved in its Earn program.
The agreement also mandated the return of funds to Genesis investors and imposed a ban on the company’s operations in New York.
Given the amount of assets in the Genesis Trading-labeled wallet and its recent transfers to Coinbase, it is plausible to assume that the wallet is preparing to fulfill its obligations by repaying users affected by the settlement.
Currently, the wallet holds a total of $2.28 billion worth of cryptocurrency, with Bitcoin accounting for $1.91 billion of its holdings.
Ether follows as the second-largest holding, valued at $364 million.
All the attention has been on the Germans but looks like Genesis is also selling a large chunk of BTC?
Started with 46k BTC (close in size to Germans) and now at 33k, moving assets to Coinbase consistently over the past month. pic.twitter.com/srNpjZSJSJ
— mhonkasalo (@mhonkasalo) July 11, 2024
These figures surpass the $2 billion in digital assets that Genesis was mandated to pay as compensation to defrauded investors in its Earn program.
Notably, on June 14, the New York Attorney General’s office announced that it had recovered over $50 million from Gemini, which would be returned to investors in the exchange’s Earn program.
The settlement also prohibited Gemini from operating any cryptocurrency lending program in New York.
The Genesis Saga
The Genesis saga has been unfolding since October 2023 when the New York Attorney General’s office filed a lawsuit against Genesis and the Digital Currency Group, its CEO Barry Silbert, and former Genesis CEO Soichiro Moro.
The lawsuit alleged that Genesis had defrauded 230,000 investors, including New York residents, through its Earn program and failed to disclose the associated risks.
In a related legal matter, the NYAG also filed a lawsuit against former Celsius CEO Alex Mashinsky for allegedly concealing the platform’s dire financial condition.
Mashinsky currently faces criminal charges in the US District Court for the Southern District of New York related to securities fraud, wire fraud, and conspiracy to commit fraud, with the trial expected to commence in January 2025.
It is worth noting that the United States and Germany have liquidated portions of their Bitcoin reserves.
Furthermore, there is also the impending distribution of Bitcoin owed to former customers of the defunct cryptocurrency exchange Mt. Gox, which could involve up to 140,000 BTC entering the market.
Since these sell-offs could invariably drive prices down, they have led to market turbulence and increased volatility.
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