A crypto wallet associated with Genesis Trading sent around 600 BTC worth $37.72 million to Coinbase on Monday. This comes on the heels of several other transactions originating from the same wallet towards the end of last week.
Genesis is currently working on bankruptcy formalities. The New York Attorney General’s office filed its lawsuit against Genesis in October last year. It soon ended up including Digital Currency Group, its executive Barry Silbert, and former Genesis CEO Soichiro Moro under the ambit of the lawsuit.
Prosecutors alleged that Gemini had defrauded 230,000 investors via its Earn program in association with Genesis. It also pointed fingers at the entities for failing to disclose their risks.
New York Attorney General Letitia James recently asserted that thousands of people, including New Yokers, had their “trust broken” and their money swindled via the “bogus” Earn program.
The entities marketed their Earn program as a way for investors to multiply their funds, but “actually lied and locked investors out of their accounts.”
Three days back, Genesis moved around $24.5k USDC to Coinbase, alongside 500 BTC worth $28.86 million. A day before that, it moved around 26.9k USDC and another 500 BTC.
In mid-June, the New York Attorney General’s office revealed that it had reached a $50 million settlement with Gemini. The recovered funds were given back to investors who signed up for the exchange’s Earn program.
The latest transfers, including the one registered on Monday, point to the potential start of asset liquidations, indicating that the entity is likely preparing to repay users.
According to AI-based on-chain analytics firm Arkham Intel, Genesis still holds 32.256 BTC, making it its largest portfolio holding. Parallelly, other major holdings include Ether worth $382 million, COMP worth $5.6 million, and USDC worth $2.6 million. Its portfolio also has holds coins like GRT, SAND, TRX, YFI, LINK, and SUSHI.
