Genesis Trading Recent Activity
Genesis Trading has recently moved substantial amounts of Bitcoin (BTC) and Ethereum (ETH) in an effort to manage creditor repayments as part of its financial restructuring process. The company has transferred 32,256 BTC and 256,775 ETH, totaling approximately $2.12 billion and $838 million respectively, within the last three days. These transfers, including significant amounts in a single hour, suggest that the assets are being redistributed to address creditor claims.
Genesis Trading Troubles Origin
The legal and financial troubles of Genesis Trading began with the collapse of the crypto exchange FTX in November 2022, leading to market contagion. Due to its exposure, particularly in its derivatives business, Genesis lost access to $175 million worth of crypto assets locked in an FTX trading account. As a result, the company halted withdrawals and filed for bankruptcy in January 2023.
Genesis Trading Settlements and Repayments
Genesis Trading reached a $3 billion settlement with New York over allegations of defrauding investors via its Earn program. Additionally, a $175 million settlement with FTX was approved by a New York bankruptcy judge, which allowed Genesis to distribute cash and crypto assets to its creditors. These repayments are expected to cover around 77% of the total claims’ value and contribute to the ongoing supply shocks in the crypto market.
