Details of the Transfer
According to on-chain data monitored by Arkham, the wallet labeled “Genesis Trading” moved the funds to Coinbase amidst a broader market sell-off over the past month. The wallet’s Bitcoin holdings have decreased from 46,000 BTC in mid-June to around 33,356 BTC currently.
Repayment to Creditors
Genesis has received court approval to repay $3 billion to its creditors. Although this amount is substantial, it is smaller compared to the over 43,000 BTC sold by the German government and the anticipated $8-$9 billion that Mt.Gox is expected to distribute to its customers.
With the wallet still holding over 33,350 BTC valued at more than $1.9 billion, the sell-off pressure is likely to persist as Genesis continues to liquidate its Bitcoin holdings to repay its customers. In May 2024, Genesis Global was authorized to distribute $3 billion in cash and crypto to its customers following bankruptcy proceedings. This move unlocked assets that had been frozen since November 2022, and Genesis appears to be selling these assets, including Bitcoin, to repay its creditors.
Settlement Agreement
New York Attorney General Letitia James announced in May that Genesis had reached a settlement and would pay $2 billion to customers of its lending program.
Remaining Digital Assets
Aside from Bitcoin, the Genesis Trading wallet holds other digital assets, including $364 million in Ethereum (ETH) and $5.3 million worth of Compound (COMP). The wallet also contains $2.64 million in USDC, $1.92 million in Tron (TRX), $1.82 million in The Sandbox (SAND), and $1.74 million in The Graph (GRT).
In total, the wallet still holds approximately $2.34 billion worth of digital assets.
