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Highlights
- Genesis just moved the sum of $1.5 billion in potential creditor repayment move
- The fund is domiciled in Bitcoin and Ethereum
- This is a significant move that might end its close to 2-year bankruptcy hurdles
Once bankrupt crypto lending giant Genesis Global has moved the sum of $1.5 billion as in what appears as funds for creditor repayment. Crypto data analytics platform Arkham Intelligence shared the update noting the funds moved are domiciled in Bitcoin (BTC) and Ethereum (ETH).
Genesis To Do Right by Its Creditors
The implosion of the FTX Derivatives Exchange in Q4 2022 impacted Genesis Global significantly. Weeks after the FTX bankruptcy, Genesis itself halted withdrawals and filed for bankruptcy. It faced some challenges with Winklevoss’ Gemini over their Earn program for users. For context, Gemini used Genesis to receive yields on the customers “Earn” crypto deposits.
Genesis decided to loan the funds to Three Arrows Capital, which later ended up bankrupt. The transaction eventually went sour and Genesis had to repay all the customers of the Gemini Earn program. After intense internal turmoil and bankruptcy proceedings, it received the green light to commence asset redemption.
The $1.5 billion funds movement spotted by Arkham Intelligence includes 16.6K Bitcoin worth approximately $1.1 billion and 166.3K Ethereum valued at $521.1 million.
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:… pic.twitter.com/5Jtxqx8mxT— Arkham (@ArkhamIntel) August 2, 2024
Noteworthy, a transfer of Ethereum worth more than $126 million showed up earlier on Friday. The company transferred 27,500 ETH (valued at about $87.09 million) to an address beginning with 0xcbCF, and an additional 12,500 ETH (worth roughly $39.59 million) to another starting with 0x72FE. This also looked like a holding for the liquidation process.
From all indications, the repayment process may commence as soon as possible.
Mt Gox Creditor to File Lawsuit
Mt Gox also commenced repayment of its creditors last month but recently, a creditor complained about not receiving his funds.
On the Mt Gox insolvency subreddit, some users detailed their intention to file a lawsuit after discovering that their claims for Bitcoin held on the defunct exchange might become void due to non-response to creditor notifications.
The poster claimed he is unaware of the ongoing creditor processes. Unfortunately, Mt Gox reportedly said that he has waived his right to recover the funds due to a lack of response.
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