Genesis Trading Moves $720M Bitcoin to Coinbase

The movement of Bitcoins in the recent past could indicate that Genesis Trading is beginning asset liquidations.

Genesis Trading, a cryptocurrency market maker, wired about $720 million in Bitcoin to Coinbase last month, according to data from the on-chain tracker service Arkham Intelligence.

The major operation included shifting more than 12,600 BTC, and as is usually the case with most of the transactions from this Genesis wallet, these involved amounts between 500 and 700 BTC.

The tracker service indicates that 33,356 BTC remained in the wallet as of June 12, while on June 12, the amount was 46,000 BTC.

The movement of bitcoins in the recent past could indicate that Genesis Trading is beginning the asset liquidations. The New York Attorney General’s office settled with Genesis, mandating it to pay $2 billion to defrauded investors and barring it from operating in New York.

The wallet identified with Genesis Trading has a balance of $2.28 billion in cryptocurrency. Bitcoin, valued at $1.91 billion, accounted for the largest market share, followed by Ethereum, valued at $364 million. Together, they are more than the $2 billion needed to repay the investors.

The New York Attorney General’s office settlement notably includes returning funds to Genesis’ investors. New York Attorney General Letitia James made this announcement two months ago to settle with Genesis for defrauding investors in its Earn program, promising that ‘Every person that Gemini has defrauded will be refunded his/her money.’

The attorney general’s office also seized more than $50 million from Gemini to distribute to the harmed investors of the Earn program. Gemini was prohibited from running any cryptocurrency lending program in New York. The affected Earn users will receive “100% of the assets owed to them” within seven days.

Former Genesis CEO Faces Fraud Lawsuit

The office of the New York Attorney General sued Genesis in October 2023. This lawsuit also includes the Digital Currency Group, its CEO Barry Silbert, and the previously mentioned former Genesis CEO Soichiro Moro. The suit accuses Genesis of defrauding 230,000 investors, including those in New York, through its Earn program.

The NYAG’s office also sued former Celsius CEO Alex Mashinsky for allegedly defrauding investors by lying about the platform’s financial situation. Mashinsky is charged with securities fraud, wire fraud, and conspiracy to commit fraud in the US District Court for the Southern District of New York, and his trial is scheduled for January 2025.

Regulators Tighten Grip on Cryptocurrency Fraud

The large volume of Bitcoin transactions indicates that Genesis Trading is in a position to meet its settlement requirements. The reduction in bitcoins shows ongoing attempts to cash out assets in the wallet, which is vital to meeting the conditions set per the settlement. The company must pay $2 billion to defrauded investors. It holds more cryptocurrencies than the required amount, which shows that it can meet the stated payments. Investors and stakeholders will monitor Genesis Trading’s future transactions.

Big Bitcoin payments made by Genesis Trading to Coinbase can influence the cryptocurrency market. Such a significant movement of asset prices impacts market sentiment and the pricing mechanism.

The settlement and the asset transfers in the case exemplify the legal measures against cryptocurrency companies. Regulators plan to prevent fraud and increase the management of the crypto sector.