Wallet Associated with Genesis Moves $720M in Bitcoin to Coinbase, Indicating Possible Liquidations

A cryptocurrency wallet linked to Genesis Trading has moved around $720 million in Bitcoin to the Coinbase exchange in the last month, indicating possible liquidations.

According to data from Arkham Intelligence, the wallet has transferred over 12,600 Bitcoin, which is roughly $719.9 million, within the past 30 days.

Significantly, these transactions mainly consisted of transfers ranging from 500 to 700 BTC.

Genesis Wallet Retains 33,356 BTC

The wallet associated with Genesis Trading currently holds a balance of 33,356 Bitcoin, marking a considerable reduction from its holdings of more than 46,000 BTC a month prior on June 12.

The timing of these substantial Bitcoin transfers follows a settlement announced two months ago by Letitia James, the attorney general for the State of New York, with Genesis Trading.

This settlement mandated Genesis to pay $2 billion to investors who were defrauded in its Earn program.

Additionally, the agreement required the return of funds to Genesis investors and imposed restrictions on the company’s operations in New York.

Considering the asset volume in the Genesis Trading-associated wallet and its recent transfers to Coinbase, it is reasonable to speculate that the wallet is preparing to meet its obligations by reimbursing users impacted by the settlement.

At present, the wallet contains a total of $2.28 billion in cryptocurrency, with Bitcoin comprising $1.91 billion of that total.

Ether ranks as the second-largest holding, valued at $364 million.

All the focus has been on the Germans, but it appears Genesis is also liquidating a significant amount of BTC?

Started with 46k BTC (similar in size to the Germans) and now at 33k, consistently moving assets to Coinbase over the past month. pic.twitter.com/srNpjZSJSJ

— mhonkasalo (@mhonkasalo) July 11, 2024

These amounts exceed the $2 billion in digital assets that Genesis was required to pay as restitution to defrauded investors in its Earn program.

Importantly, on June 14, the New York Attorney General’s office revealed that it had recovered over $50 million from Gemini, which would be returned to investors in the exchange’s Earn program.

The settlement also barred Gemini from conducting any cryptocurrency lending program in New York.

The Genesis Narrative

The Genesis narrative has been developing since October 2023 when the New York Attorney General’s office initiated a lawsuit against Genesis and the Digital Currency Group, along with its CEO Barry Silbert and former Genesis CEO Soichiro Moro.

The lawsuit claimed that Genesis had defrauded 230,000 investors, including residents of New York, through its Earn program and failed to disclose the related risks.

In a connected legal issue, the NYAG also filed a lawsuit against former Celsius CEO Alex Mashinsky for allegedly hiding the platform’s severe financial situation.

Mashinsky currently faces criminal charges in the US District Court for the Southern District of New York concerning securities fraud, wire fraud, and conspiracy to commit fraud, with the trial anticipated to begin in January 2025.

It is important to note that both the United States and Germany have liquidated parts of their Bitcoin reserves.

Moreover, there is the upcoming distribution of Bitcoin owed to former customers of the now-defunct cryptocurrency exchange Mt. Gox, which could see up to 140,000 BTC entering the market.

As these sell-offs may potentially depress prices, they have contributed to market instability and heightened volatility.

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