Bankrupt crypto lending company Genesis may have started moving millions of dollars worth of Ethereum (ETH).
Data from digital asset deanonymization platform Arkham shows that a crypto wallet collected 114,503 ETH worth nearly $360 million from an address of Genesis Trading: Bankruptcy Distribution.
According to Arkham, the receiving wallet could also be from Genesis, but the blockchain tracking company gave it a tag with a ‘lower reliability prediction’.
On Sunday, the address in question sent 5,000 ETH worth nearly $13 million to a deposit address of institutional crypto-prime broker FalconX.
The wallet still contains $424.74 million worth of Ethereum.
Genesis, a subsidiary of Barry Silbert’s investment giant Digital Valuta Group (DCG), first halted withdrawals in November 2022 due to liquidity issues caused by the collapse of crypto hedge fund Three Arrows Capital. The lender filed for bankruptcy in early 2023.
Later that year, New York State Attorney General (AG) Letitia James filed a lawsuit alleging that DCG, the crypto exchange Gemini, and Genesis attempted to conceal $1.1 billion in losses and “repeatedly” lied to their investors.
In an amended complaint earlier this year, James increased that amount to more than $3 billion after more investors came forward following the initial announcement of the lawsuit.
In May, a U.S. bankruptcy court greenlighted Genesis Global’s liquidation plan to repay about $3 billion to its creditors, and James announced a $2 billion settlement with the company.
In August, the bankrupt lender announced that it had begun distributing about $4 billion in digital assets and cash to its creditors.
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