Wallets affiliated with Genesis, which recently filed for bankruptcy, have mobilized major altcoins such as Fantom (FTM), Ethereum (ETH), and USDT. Meanwhile, the first hearing for the platform’s bankruptcy case will take place today. Here are the details…
Mobility in wallets linked to Genesis: FTM becomes ETH transfer
Even with Genesis’ crypto lending business coming under bankruptcy court protection, the company’s non-Chapter 11 trading arm still circulates money on Blockchains. According to Blockchain data compiled by Etherscan, a wallet controlled by the Genesis OTC trading desk sent approximately $125 million in ETH, FTM, and USDT to Coinbase, Binance, Bitstamp, and Kraken on Thursday, when the bankruptcy filing was filed. In the past few hours, the wallet has received around 50 million USD USDC by transacting several more times.
It is not yet clear how the bankruptcy of Genesis’ credit institution will affect its spot and derivatives businesses over the long term. Charles Stry, head of growth at crypto index platform Phuture, said in an interview, “Genesis’ reputation is in the trash. Maybe they are keeping some old customers. Maybe. When it comes to bringing in new customers, you don’t stand a chance when it comes to bankruptcy.” Frank Chaparro posted a Twitter poll asking users if they would trade with Genesis after the bankruptcy of its lending division. Of the 938 respondents, 73.7% voted “no”.
During Thursday’s crypto move, OTC desk wallet sent 50,000 ETH to Coinbase, 20,000 ETH to Bitstamp, and 5,000 ETH to Kraken. According to Etherscan, it sent an additional 7.7 million FTM worth approximately $2.4 million to Binance and $3.9 million USDT to Kraken. This particular wallet usually moves coins on weekdays, as Nansen.ai data shows, so Thursday transactions looked basically normal amid the bankruptcy drama.
What are the altcoins in Genesis’ portfolio?
Genesis’ off-chain portfolio of at least eight unique addresses has a net worth of $307 million. ETH is 74.7 percent of Genesis’ portfolio, while the next six tokens (USDC, COMP, SAND, APE, MANA, and AAVE) make up 13.8 percent of the entire portfolio. DarkFi.eth, a bona fide person who stole and then refunded nearly $2 million from the Nomad bridge deficit in August 2022, said:
“It is not strange for startups to hide which wallets they hold their tokens in. Still, Genesis’ known assets make it the third-largest whale on Nansen’s Fund Leaderboard after Jump Trading and Paradigm Capital.
Meanwhile, as we have also reported on Cryptokoin.com, Genesis Global Capital’s “First Day Hearing” in Chapter 11 bankruptcy case will be held today, Monday, January 23, according to court documents.
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