The bankrupt crypto lending firm Genesis has potentially begun to move millions of dollars worth of Ethereum (ETH).
Data from the digital asset deanonymizing platform Arkham shows that a crypto wallet collected 114,503 ETH worth nearly $360 million from an address belonging to Genesis Trading: Bankruptcy Distribution.
[adinserter block="1"]According to Arkham, the receiving wallet may also belong to Genesis but the blockchain tracking firm gave it a “lower confidence prediction” tag.
On Sunday, the address in question sent 5,000 ETH worth nearly $13 million to a deposit address for the institutional crypto prime brokerage FalconX.
The wallet still holds $424.74 million worth of Ethereum.
Genesis, an affiliate of Barry Silbert’s investment giant Digital Currency Group (DCG), first halted withdrawals in November 2022 due to liquidity problems caused by the collapse of crypto hedge fund Three Arrows Capital. The lender filed for bankruptcy in early 2023.
Later that year, New York State Attorney General (AG) Letitia James launched a lawsuit alleging that DCG, the crypto exchange Gemini and Genesis attempted to conceal $1.1 billion in losses and “repeatedly lied” to their investors.
In an amended complaint earlier this year, James upped that number to more than $3 billion after more investors came forward following the lawsuit’s initial announcement.
In May, a US bankruptcy court greenlit Genesis Global’s liquidation plan to return about $3 billion to its creditors, and James subsequently announced a $2 billion settlement with the firm.
In August, the bankrupt lender announced that it had commenced the distribution of approximately $4 billion in digital assets and cash to its creditors.
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