Genesis Trading Transfers $720 Million in Bitcoin to Coinbase Amid Potential Liquidations
A cryptocurrency wallet linked to Genesis Trading has moved approximately $720 million worth of Bitcoin to the Coinbase exchange over the past month, signaling a potential commencement of asset liquidations.
The wallet, labeled with Genesis Trading, has transferred more than 12,600 Bitcoin, valued at roughly $719.9 million, in the last 30 days, primarily through transactions ranging between 500 and 700 BTC.
Currently, the address holds 33,356 Bitcoin, a significant decrease from over 46,000 BTC a month ago, as recorded on June 12 by Arkham Intelligence data.
These substantial Bitcoin transfers occur two months after Letitia James, the Attorney General for the State of New York, announced a settlement with Genesis, requiring the firm to pay $2 billion to defrauded investors from its Earn program. This settlement mandates the return of funds to Genesis investors and prohibits the company from operating within New York.
Genesis Traders on the Verge of Repayment
The address associated with Genesis Trading may be gearing up to repay users, given the volume of assets and recent transfers to Coinbase.
The wallet currently holds a total of $2.28 billion in cryptocurrency, with Bitcoin making up $1.91 billion of this total, followed by $364 million worth of Ether. This amount exceeds the $2 billion in digital assets that Genesis was ordered to return to the defrauded investors of its Earn program.
On June 14, the New York Attorney General’s office announced the recovery of more than $50 million from Gemini, which will be returned to investors in the exchange’s Earn program. The settlement also bans Gemini from operating any cryptocurrency lending programs in New York state. On the social platform X, James stated that “everyone that Gemini deceived will get their money back.” Gemini Trust indicated that affected Earn users could expect “100% of the assets owed to them” within seven days.
The Genesis Saga
The New York Attorney General’s (NYAG) office initially filed a lawsuit against Genesis in October 2023, later extending it to include the Digital Currency Group, its CEO Barry Silbert, and former Genesis CEO Soichiro Moro. The lawsuit claimed that Gemini defrauded 230,000 investors, including New York residents, through its Earn program with Genesis Global Capital and failed to disclose associated risks.
The NYAG has also filed a lawsuit against former Celsius CEO Alex Mashinsky, alleging that he concealed the platform’s “dire financial condition.” Mashinsky currently faces criminal charges in the US District Court for the Southern District of New York for securities fraud, wire fraud, and conspiracy to commit fraud, with a trial expected to commence in January 2025.
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