A cryptocurrency wallet connected to Genesis Trading recently transferred nearly $720 million worth of Bitcoin to the Coinbase exchange, signalling the possible start of asset liquidations. Over the last month, the wallet in question transferred over 12,600 Bitcoin, which fell primarily within the range of 500 to 700 BTC transactions. Comparatively to last month, this represents a reduction in the Bitcoin held by the address by over 12,500 BTC.
This series of transactions occurred two months after a settlement was made with the state of New York. Letitia James, the state’s attorney general, revealed this agreement required Genesis to pay $2 billion to victims of fraud concerning its Earn program. This lawsuit also saw Genesis barred from operating within the state.
These circumstances could mean Genesis traders are set to be reimbursed. Based on the recent Coinbase transfers and overall asset quantity, it seems this labelled address could be gearing up to initiate repayments. The wallet is currently holding around $2.28 billion in cryptocurrency, of which $1.91 billion is Bitcoin, and $364 million is Ether.
This sum is notably more than the $2 billion in digital assets the platform was required to return to investors swindled by its Earn program. On a related note, the New York Attorney General’s office recently recovered over $50 million from Gemini, which is also to be returned to investors in its Earn program. This situation saw Gemini, like Genesis, prohibited from operating any cryptocurrency lending program in New York.
The Genesis narrative involves a lawsuit filed by the New York Attorney General’s office against the company in October 2023. This suit pressed charges against Genesis of defrauding 230,000 investors through its Earn program, in which the risks were not adequately disclosed. Legal action was also taken against former Celsius CEO Alex Mashinsky, whom prosecutors charged with concealing the fintech’s dismal financial situation. Mashinsky is facing criminal charges and is slated for trial in early 2025.