Institutional troubled cryptocurrency lending and trading protocol Genesis Trading moved digital assets from its wallets to exchanges after filing for bankruptcy protection. Notably, Genesis Global Capital, LLC and Genesis Asia Pacific Pte. Ltd., filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code with the United States Bankruptcy Court for the Southern District of New York on January 19.
However, the DCG subsidiary noted that it had filed in court to continue day-to-day operations as normal despite the suspension of lending activity. Nonetheless, Genesis said the claims will be secured through the bankruptcy court process.
“Genesis has over $150 million in liquid assets, which will provide sufficient liquidity to support its ongoing business operations and facilitate the restructuring process. The company has filed a number of customary “day one” motions with the court to allow day-to-day operations to continue in the normal course,” Genesis Noted.
Earlier today, blockchain security firm PeckShieldAlert highlighted several transactions worth over $100 million that allegedly originated from Genesis Trading to several centralized cryptocurrency exchanges. Among the transferred digital assets are Ethereum (ETH), Tether USDT and Circle’s USDC.
“Around $75k ETH ($113.7m) and $3.9m USDT transferred from Genesis Trading:OTC Desk to crypto exchanges Coinbase, Bitstamp, and Kraken Approximately $36m USDC transferred from Genesis Trading:OTC Desk to a new address 0x81b3…543,” PeckShield Noted.
As such, digital assets transferred from Genesis Trading to crypto exchanges are likely intended to support operations and facilitate restructuring processes.
Interestingly, the Bitcoin price-led crypto market was less affected by the Genesis crash. According to our latest crypto price oracles, Bitcoin is trading around $21,000 on Friday. Ethereum price, on the other hand, is trading around $1,555, up around 2.2% in the last 24 hours.