Genesis Trading’s lending business Genesis Global Capital filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York. Amid the bankruptcy filing, Genesis Trading is actively transferring crypto assets to other crypto exchanges and wallets.
Genesis Trading Transfers Crypto Assets
Blockchain security platform PeckShieldAlert in a tweet on January 20 disclosed several millions of crypto assets transferred by Genesis Trading.
Genesis Trading transferred 75k Ethereum (ETH) worth $113.7 million and 4 million USDT from its OTC Desk to crypto exchanges Coinbase, Bitstamp, and Kraken. 50k ETH was transferred to Coinbase, 20k ETH to Bitstamp, and 5k ETH and 4 million USDT to Kraken.
In addition, it transferred 36 million USDC to new address 0x81b3…543. The large ETH transfers were also noted by the Whale Alert platform.
Crypto Twitter reacted to the transfers made by Genesis Trading amid the bankruptcy filing by its lending business Genesis Global Capital. Some believe the firm is liquidating assets in preparation for returning creditors’ claims.
According to Nansen, Genesis’ largest CEX transactions in the last 30 days include $51.9M USDC net deposits to Coinbase, $43.7M USDT net withdrawals from Kraken $28.7M, ETH net deposits to Bitstamp, $19M USDT net withdrawals from OKX, and $10.8M USDT and $7M USDC withdrawals from Binance.
Genesis’ bankruptcy was likely predicted by several experts as parent firm Digital Currency Group and founder Barry Silbert failed to reach negotiations with creditors. It also planned to raise $1 billion in emergency funding, but the crypto contagion from FTX sidelined investors from making further investments in the firm.
Genesis Capital Filing for Bankruptcy Protection
Genesis Capital stopped withdrawals and redemptions for several lending products including crypto exchange Gemini’s Earn program.
After Genesis filed for Chapter 11 bankruptcy, Gemini co-founder Cameron Winklevoss said it will continue with its decision to take legal action against Digital Currency Group, founder Barry Silbert, and others for recovering customer funds.
The crypto lender currently has almost $150 million in cash to support restructuring. According to the court filing, assets and liabilities are in the range of $1 billion to $10 billion, and over 100,000 creditors.
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