Ethereum Drops By 5% as Genesis Moves $500 Million for Repayment
Genesis is actively moves $1.5B BTC and ETH as repayments to its creditors, a significant step towards resolving the firm's ongoing financial woes.
Genesis Trading, the beleaguered cryptocurrency brokerage firm, moved a staggering 16.6K BTC (approximately $1.1 billion) and 166.3K ETH ($521.1 million) within the past hour.
This unprecedented movement has led many to believe that Genesis is actively engaging in in-kind repayments to its creditors, a significant step towards resolving the firm’s ongoing financial woes.
Genesis Move Trigger Market chaos
However, the recent transactions have sent shockwaves through the crypto space, particularly on platforms like X (formerly Twitter), where users are expressing a mix of relief, skepticism, and even outright cynicism.
Moreover, while some are hopeful that this move signifies a positive turn for Genesis and a potential return to stability for the crypto market, others remain cautious, questioning the true intent behind these transfers.
Ethereum price has since dipped on the news of the large transfer. It started trading at $3,200 but retraced to a low of $2,964, losing over 6%.
In January 2023, the firm filed for bankruptcy after it was impacted by the collapse of FTX and other industry failures facing a tumultuous period. The firm is actively working on restructuring its business and repaying its creditors, facing a complex legal battle that has involved numerous stakeholders.
This latest development offers a glimmer of hope for Genesis’s creditors. The prospect of receiving substantial portions of their owed funds in the form of cryptocurrency assets, especially Bitcoin and Ethereum, could be a significant relief. However, the exact nature of the repayments and their impact on the firm’s overall recovery remain unclear.
Nonetheless, many in the crypto space on X are quick to point out that this does not necessarily signal a complete resolution of the Genesis situation. The firm still faces legal hurdles and ongoing negotiations with its creditors. The potential success of these repayments and their impact on the overall crypto market remains uncertain.
Mt. Gox Moved $2.85 Billion BTC in Two Hours
On July 23, 2024, the defunct cryptocurrency exchange Mt. Gox executed a significant transaction, transferring over 47,500 Bitcoin, valued at almost $3.2 billion, to two previously unknown addresses. The transfers occurred at 5:05 am and 6:27 am UTC. This move has sparked considerable interest within the cryptocurrency community, particularly due to the scale and timing of the transaction.
According to data from Arkham Intelligence, Mt. Gox currently holds approximately 42,744 Bitcoin, worth around $2.85 billion.
