Wallets associated with bankrupt cryptocurrency financier Genesis transferred more than $1.5 billion in bitcoin and ether on Friday.
Genesis repaid its debt to #cryptocurrency exchange #Gemini earlier this year, ending a lengthy arbitration process that led to the suspension of Gemini Earn products after Genesis stopped withdrawing funds.
the company, which was sued by the New York attorney general, suffered significant losses after Three Arrows Capital filed for bankruptcy.
According to blockchain data provider Arkham Research, wallets associated with cryptocurrency financier Genesis Trading, owned by conglomerate Digital Currency Group, lost 16,000 bitcoins (worth $1.1 billion) and 166,. 000 ether (worth $521 million) or more. This likely indicates that Genesis Trading will begin paying creditors after bankruptcy in 2022.
This comes exactly one year after Genesis reached an agreement to pay $1.5 billion to customers of #cryptocurrency exchange Gemini who were affected by the collapse of Gemini's cryptocurrency lending platform, Arn. Gemini used Genesis to generate revenue from #cryptocurrencies invested by Arn customers, which Genesis then lent to bankrupt hedge fund Three Arrows Capital.
In May, Gemini announced that Arn users had received all of their digital assets in kind, allowing Genesis to begin repaying remaining creditors. In a court filing in January 2023, Genesis listed more than $3 billion in claims against its 50 largest creditors, including Gemini, trading giant Cumberland and Van Eck's New Finance Income Fund.
Friday's events indicate that a long and troubling chapter in the history of cryptocurrencies may be coming to an end.
"bull
" market of the pandemic era.
Genesis has said it may file for bankruptcy in January 2023, with up to 100,000 creditors and debts of up to $10 billion. The fate of Friday's transfer is not yet clear.
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