On August 3, cryptocurrency lending company Genesis Global announced that it had completed its restructuring process on August 2 and started distributing approximately $4 billion in cryptocurrency and cash to repay creditors.
When filing for bankruptcy last year, Genesis revealed that it had over 100,000 creditors and debts amounting to $10 billion. The company owes around $3 billion to its top 50 creditors, including cryptocurrency exchange Gemini, asset management company VanEck, and trading firm Cumberland.
On average, Genesis creditors will recover 64% of their claims through cryptocurrency repayments. Specifically, Bitcoin creditors will recover 51.28% of their BTC, Ethereum and Solana creditors will recover 65.87% of their ETH and 29.58% of their SOL, respectively, while creditors holding stablecoins or US dollars will receive 100% of their lost funds.
Following this announcement, Bitcoin’s price continued to drop from $62,800 to $60,800. Last night, BTC also “plummeted” from $65,400 to $62,800 after the company moved billions of dollars worth of Bitcoin and Ethereum.
As reported by Allinstation, on August 2, starting at 20:43 (Vietnam time), Genesis Trading executed multiple Bitcoin and Ethereum transfers, causing concern within the cryptocurrency community
Initially, they transferred 27,500 ETH to an address beginning with 0xcbCF, worth approximately $87.09 million. Simultaneously, Genesis Trading also transferred 12,500 ETH to an address beginning with 0x72FE, worth approximately $39.59 million.
Notably, shortly thereafter, Genesis’ wallets conducted a series of transfers of BTC and ETH to various other wallets. To date, the total amount of coins Genesis has transferred is 16.6K BTC (equivalent to $1.1 billion) and 166,300 ETH (equivalent to $521.1 million).
In recent months, Genesis Trading has continuously transferred Bitcoin and Altcoins to exchanges, causing community concern.
In June, the company consistently transferred large amounts of Bitcoin to Coinbase, with a total of 9,050 BTC sent.
Earlier, at the end of May, Genesis Trading’s wallet also transferred altcoins worth $33.6 million into Gemini. Reports indicate that more than 30 altcoins were transferred, including:
- 16.4 million GRT ($4.69 million)
- 396 million AMP ($2.94 million)
- 123,000 INJ ($2.93 million)
- 32,000 AAVE ($2.88 million)
- 970 PAXG ($2.26 million)
- 9.19 million BAT ($2.25 million)
- and many other altcoins like CRV, APE, LINK, SUSHI.
Genesis, one of the largest cryptocurrency lending companies, halted customer withdrawals in November 2022. Later, on January 19, 2023, the company filed for bankruptcy in the Southern District of New York Bankruptcy Court.
According to documents filed in the Southern District of New York Bankruptcy Court (USA), cryptocurrency lender Genesis seeks to liquidate trust assets worth $1.6 billion to avoid significant price volatility in Bitcoin, Ethereum, and Ethereum Classic. This measure ensures that Genesis’ repayment plan remains unaffected.
