Arkham Intelligence data has spotted significant activity in redistributing assets worth $4 billion in the Genesis Global restructuring process. The movement occurred in the wallet address 0x999…46E, which was the greatest beneficiary during the Genesis Trading creditor repayments.
Massive Ethereum Selloff Sparks Concerns
According to the data, this creditor liquidated 12,100 Ethereum, valued at about $31.43 million, in three days. The creditor’s selloff move happened after receiving its share of the repayment funds from Genesis Trading.
Following the August liquidation process, the creditor under focus received 114,502 ETH, valued at $358.19 million at the time of the transaction.
This creditor’s offloading move has stunned market watchers. This is primarily because the creditor has already initiated a selloff despite having the largest portion of repayment. More surprising is the amount involved.
Market Reaction and Fears of Selling Pressure
Available data reveals that the offloading commenced on September 23 with a transfer to a firm. On that occasion, the creditor initiated the transfer of ETH from the wallet to a leading institutional crypto brokerage firm, FalconX.
Within days, 12,100 ETH were moved from the creditor’s wallet. The latest transaction, valued at $18,560,000, involved the transfer of 7,099 ETH.
These large transactions have sparked concerns in the crypto market, particularly among ETH holders. The market has been characterized by uncertainties in recent times, and this volume being offloaded by the creditor could elicit selling pressure.
Despite these fears, Ethereum has recorded a 0.54% climb to $2,636.37 in the past 24 hours, according to data from CoinMarketCap. Meanwhile, market volume has dropped by 3.35% to $15,118,422,997.
Genesis Restructuring and Bankruptcy Repayments
As reported by The CoinRise, earlier in May this year, Judge Sean Lane approved Genesis Global’s bankruptcy distribution. The total asset was worth $4 billion, to be shared among creditors. This creditor spotted by Arkham happened to have received the largest share of that distribution.
As per Genesis Global’s restructuring plan, the initial distribution paid out 64% recoveries to creditors on a coin-by-coin basis. That is, the creditors got paid in the cryptocurrency they held prior to the bankruptcy, helping to ensure an even distribution process.
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