tl;dr

Genesis Global, a previously bankrupt crypto lending company, has transferred $1.5 billion in Bitcoin and Ethereum, apparently for creditor repayment. The move follows the company's challenges with the FTX Derivatives Exchange and a loan to Three Arrows Capital, which later went bankrupt. The transf...

Genesis Global, a previously bankrupt crypto lending company, has transferred $1.5 billion in Bitcoin and Ethereum, apparently for creditor repayment. The move follows the company's challenges with the FTX Derivatives Exchange and a loan to Three Arrows Capital, which later went bankrupt. The transfer, identified by Arkham Intelligence, includes 16.6K Bitcoin (worth about $1.1 billion) and 166.3K Ethereum (valued at $521.1 million).

Additionally, Mt Gox has started repaying creditors, but some individuals are considering a lawsuit due to concerns about potentially voided claims for Bitcoin held on the defunct exchange. Mt Gox creditor to file lawsuit over non-receipt of funds. Cryptocurrency data analytics platform Arkham Intelligence shared the update, noting the funds moved are domiciled in Bitcoin (BTC) and Ethereum (ETH).

Genesis Global significantly felt the impact of the FTX Derivatives Exchange's collapse in Q4 2022. Weeks after the FTX bankruptcy, Genesis itself halted withdrawals and filed for bankruptcy. It faced challenges with Winklevoss’ Gemini over their Earn program for users. Genesis decided to loan the funds to Three Arrows Capital, which later ended up bankrupt. The transaction eventually went sour, and Genesis had to repay all the customers of the Gemini Earn program. After intense internal turmoil and bankruptcy proceedings, it received the green light to commence asset redemption. The $1.5 billion funds movement spotted by Arkham Intelligence includes 16.6K Bitcoin worth approximately $1.1 billion and 166.3K Ethereum valued at $521.1 million.

Noteworthy, a transfer of Ethereum worth more than $126 million showed up earlier on Friday. The company transferred 27,500 ETH (valued at about $87.09 million) to an address beginning with 0xcbCF, and an additional 12,500 ETH (worth roughly $39.59 million) to another starting with 0x72FE. This also looked like a holding for the liquidation process. From all indications, the repayment process may commence as soon as possible.

Mt Gox also commenced repayment of its creditors last month but recently, a creditor complained about not receiving his funds. On the Mt Gox insolvency subreddit, some users detailed their intention to file a lawsuit after discovering that their claims for Bitcoin held on the defunct exchange might become void due to non-response to creditor notifications. The poster claimed he is unaware of the ongoing creditor processes. Unfortunately, Mt Gox reportedly said that he has waived his right to recover the funds due to a lack of response.

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 23 Dec 24
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