Genesis Moves $360M in Ethereum Amid Bankruptcy Process

The insolvent crypto lending platform Genesis appears to have started moving large sums of Ethereum (ETH).

Data from Arkham, a digital asset tracking platform, revealed that a wallet gathered 114,503 ETH, valued at nearly $360 million, from a Genesis Trading wallet labeled “Bankruptcy Distribution.”

Arkham suggests the receiving wallet might also belong to Genesis, though it tagged it with a “lower confidence prediction.” Recently, this address transferred 5,000 ETH, worth close to $13 million, to a deposit address associated with FalconX, an institutional crypto brokerage.

The wallet currently holds around $424.74 million in Ethereum.

Genesis, a subsidiary of Barry Silbert’s Digital Currency Group (DCG), paused withdrawals in November 2022 after the collapse of Three Arrows Capital impacted its liquidity. The lender subsequently filed for bankruptcy in 2023.

Later, New York Attorney General Letitia James filed a lawsuit accusing DCG, Gemini, and Genesis of hiding $1.1 billion in losses and misleading investors. The lawsuit later expanded, with James alleging losses exceeding $3 billion.

In May, Genesis received court approval to implement a liquidation plan aimed at returning roughly $3 billion to creditors, and the firm agreed to a $2 billion settlement. By August, the company started distributing around $4 billion in assets and cash to creditors.