YEREVAN (CoinChapter.com) — A cryptocurrency wallet linked to Genesis Trading has moved nearly $720 million worth of Bitcoin to Coinbase over the past month. This transfer points to possible asset liquidations by the firm.
Genesis Trading Moves $720M in Bitcoin to Coinbase Amid NY Settlement
Over the last 30 days, a Genesis Trading-related wallet transferred more than 12,600 Bitcoin, valued at $719.9 million, to Coinbase. These transactions were mainly in chunks of 500 to 700 BTC. As a result, the wallet’s Bitcoin balance dropped from over 46,000 BTC to 33,356 BTC in one month, according to Arkham Intelligence.
These large Bitcoin transfers follow a settlement that Genesis reached with the state of New York two months ago. The settlement requires Genesis to pay $2 billion to investors defrauded through its Earn program.
NY AG Orders Genesis to Repay $2B to Defrauded Investors
New York Attorney General Letitia James announced a settlement with Genesis. The firm must repay $2 billion to defrauded investors and is banned from operating in New York. This settlement addresses the grievances of investors affected by the Earn program.
Attorney General James stated,
“Everyone that Gemini deceived will get their money back.”
This settlement ensures that affected users will be repaid.
Genesis Trading Prepares $2B Repayment with Bitcoin and Ether Transfers
The Genesis Trading wallet currently holds $2.28 billion worth of cryptocurrency. This includes $1.91 billion in Bitcoin and $364 million in Ether. The total value exceeds the $2 billion required to repay investors, indicating that Genesis might be preparing for repayments.
These movements to Coinbase suggest that Genesis is gearing up to liquidate assets to comply with the settlement terms.
NY AG Recovers $50M from Gemini for Investor Repayment
Alongside Genesis, the New York Attorney General’s office recovered more than $50 million from Gemini. These funds will be returned to investors in Gemini’s Earn program, with a promise that affected users will receive “100% of the assets owed to them” within seven days.
The lawsuit against Genesis, filed in October 2023, also targets the Digital Currency Group, its CEO Barry Silbert, and former Genesis CEO Soichiro Moro. The allegations claim that Gemini defrauded 230,000 investors, including New York residents, by failing to disclose risks associated with the Earn program.
NY AG Targets Crypto Firms in Legal Crackdown
The legal actions against Genesis and Gemini are part of a larger effort by the New York Attorney General’s office to hold crypto firms accountable. The lawsuit against former Celsius CEO Alex Mashinsky, for allegedly hiding the platform’s financial condition, underscores this effort. Mashinsky faces criminal charges related to securities fraud and wire fraud, with a trial set for January 2025.
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