A cryptocurrency wallet associated with Genesis Trading has transferred $720 million worth of Bitcoin to Coinbase over the past month as the company prepares for asset liquidations.
The Genesis Trading-labeled address appears to be preparing to repay users, holding a total of $2.28 billion in cryptocurrency, with $1.91 billion in Bitcoin as the largest holding, followed by $364 million in Ether.
The wallet moved over 12,600 Bitcoin, valued at $719.9 million, primarily in transactions ranging from 500 to 700 BTC. It currently holds 33,356 Bitcoin, down from over 46,000 BTC a month ago, according to data from Arkham Intelligence.
The Bitcoin transfers follow a settlement announced two months ago by Letitia James, the attorney general for the State of New York, which required Genesis to pay $2 billion to defrauded investors involved in its Earn program. The settlement also banned Genesis from operating in New York.
In June, the New York Attorney General’s office recovered more than $50 million from Gemini to be returned to investors in the exchange’s Earn program. The settlement banned Gemini from operating any cryptocurrency lending program in New York, with James assuring on X that all affected investors would get their money back. Gemini Trust stated that affected Earn users could expect “100% of the assets owed to them” within seven days.
As part of the settlement, the U.S.-focused spot crypto trading business will surrender its BitLicense, which it has held since 2018.
Genesis was a major provider of trading services to institutional clients before encountering challenges last year. That said, the settlement specifically involves Genesis Global Trading, a distinct entity from Genesis Global Capital. The latter, along with Gemini and Digital Currency Group, was the subject of a lawsuit filed by New York’s attorney general in October, alleging investor fraud in the Gemini Earn program.
Additionally, the NYAG filed a lawsuit against former Celsius CEO Alex Mashinsky for allegedly hiding the platform’s “dire financial condition.” Mashinsky faces criminal charges related to securities fraud, wire fraud, and conspiracy to commit fraud, with a trial expected in January 2025.
Since 2015, crypto firms operating in New York have been required to obtain a BitLicense through the NYDFS, a regulation that has been a subject of debate and concern among industry players.
