Genesis, a cryptocurrency lending platform, has already sought bankruptcy court protection. However, it appeared that its trading business, which was supposedly discharged from Chapter 11, had been moving money between various blockchains. This action is a clear indication that the company’s operations were continuing to run at least somewhat normally.
A Genesis OTC trading desk managed wallet was discovered to have delivered around $125 million in ETH, FTM, and USDT to Coinbase, Binance, Bitstamp, and Kraken, according to blockchain data collated by Etherscan. The day that Genesis filed for bankruptcy also saw this movement.
According to reports, on Thursday of this week, the last OTC desk wallet delivered 50,000 ETH to Coinbase, 20,000 ETH to Bitstamp, and 5,000 ETH to Kraken. Additionally, the same wallet paid USDT worth $3.9 million to Kraken and FTM worth about $2.4 million to Binance.
Although Genesis is currently protected by a bankruptcy court, Nansen.ai data reveals that this wallet regularly moves money on weekdays, making the aforementioned transactions appear essentially normal despite the drama surrounding the bankruptcy. This observed movement is consistent with the first declaration made by Genesis’ parent firm, Digital Currency Group, that the trading operation will “continue to perform business as usual.”
Crypto Community’s Thoughts
Even though Genesis’ bankruptcy filing was only a few days ago, many industry insiders are already gloomy about its potential long-term impact on the spot and derivatives markets.
Charles Storry, the head of growth at the cryptocurrency index platform Phuture, asserted that Genesis’ reputation is currently in ruins in an interview. He said, “Perhaps they retain some legacy clients. Maybe. No prospect of bringing on new clients while bankruptcy is active.
On the other hand, well-known journalist Frank Chaparro used Twitter to gauge public sentiment over whether they would continue doing business with Genesis following the bankruptcy of the lending division. 73.7% of the 938 people who responded to his Twitter poll as of this writing have selected “no.”