Genesis Transfers Over $113M To Exchanges Despite Filling for Chapter 11 Bankruptcy Protection
Distressed institutional crypto lending and trading protocol Genesis Trading has transferred 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 U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York on January 19.
However, the DCG subsidiary noted that it has filed with the court to continue with its daily operations normally despite suspending the lending business. Nonetheless, Genesis indicated that claims will be assured through the bankruptcy court process.
“Genesis has more than $150 million in cash on hand which will provide ample liquidity to support its ongoing business operations and facilitate the restructuring process. The company has filed a number of customary “first-day” motions with the court to enable 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 believed to have originated from Genesis Trading towards several centralized cryptocurrency exchanges. Among the transferred digital assets include Ethereum (ETH), Tether USDT, and Circle’s USDC.
“About 75k $ETH ($113.7M) and3.9M $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, the transferred digital assets from Genesis Trading to crypto exchanges are likely meant to support operations and facilitate restructuring processes.
Interestingly, the crypto market led by Bitcoin price has been less affected by the Genesis collapse. According to our latest crypto price oracles, Bitcoin is exchanging around $21k on Friday. Ethereum’s price, on the other hand, is trading around $1,555, up approximately 2.2 percent in the past 24 hours.