The transfer of $1.5 billion in BTC and ETH by Genesis Trading resulted in a decrease in prices.
According to an X post by Arkham Intelligence, Genesis Trading has transacted more than $1.5 billion in Bitcoin (BTC) and Ethereum (ETH) in the past hour. Consequently, BTC experienced a 2.2% decline in the past hour, while ETH experienced a 2.5% correction during the same time frame. The transactions, which totaled 16,600 BTC and 166,300 ETH, are expected to be the beginning of the in-kind repayments to creditors.
Genesis was a member of the Digital Currency Group (DCG), which also includes Grayscale, and was the primary institutional lender in the crypto industry, supporting the “earn” programs of numerous companies, including the exchange Gemini.
Nevertheless, Genesis encountered liquidity challenges and failed to satisfy its clients subsequent to the Terra collapse in 2022, which caused the demise of entities such as Three Arrows Capital. The organization submitted an application for bankruptcy protection in January 2023. In May, the organization prevailed in a lawsuit that resulted in the return of $3 billion to consumers. Subsequently, it reached a $2 billion settlement with New York Attorney General Letitia James.
Moreover, the US Securities and Exchange Commission (SEC) initiated a legal action against Genesis and Gemini for purportedly selling unregistered securities through Gemini Earn. Genesis consented to pay the regulator $21 million in another settlement.
Genesis Trading redeemed more than 32,000 BTC, which is equivalent to approximately $2.1 billion, during its insolvency process in April. This action was the result of a settlement that returned $2 billion to nearly 232,000 Gemini customers.
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