Key Takeaways
- Genesis creditor, who received 114,000 ETH in August, has started dumping ETH.
- The creditor sold nearly $31 million worth of ETH starting Sept. 3.
- The crypto market has seen several liquidation proceedings this year, which has led to higher volatility.
The creditor who received the most Ethereum (ETH) from Genesis trading liquidation in August has started selling ETH in loads. The creditor received 114,502 ETH (about $358.19 million) in liquidation compensation from Genesis Trading.
According to Arkham data, the creditor sold over 12,000 ETH worth $31.43 million in the last three days.
More ETH Sales Coming?
The wallet address 0x999…46E became the biggest recipient of Genesis Trading liquidation proceeds, receiving nearly $360 million in ETH. The proceeds came into the wallet on Aug. 2, and the creditor started selling ETH on Sept. 23.
Since Sept. 23, the wallet has made five transactions, all to a wallet address linked to FalconX.
FalconX is an institutional crypto trading and brokerage platform that offers a range of products and services for institutional investors.
The creditor-linked wallet first made a trial transaction of 1 ETH, followed by another transaction of 4,999 ETH on Monday.
After a day of rest, the wallet became active again on Wednesday, and the creditor sent another 1ETH trial transfer before sending over 7,899 ETH to the FalconX-linked wallet.
ETH Creditor Wallet Movements. Source: Arkham
The creditor wallet currently holds $154,000 ETH worth over $400 million, and if the creditor continues to dump ETH on the market, it could increase the volatility of the second-largest cryptocurrency.
Genesis Trading Liquidations and Its Impact on Crypto Market
Crypto Lender Genesis Trading received court approval to liquidate nearly $3 billion in crypto and cash in May this year. The crypto lender started processing creditors’ claims in August.
The liquidation proceedings were controversial as Genesis’s parent firm, the Digital Currency Group (DCG) objected to the liquidation plan.
DCG staked a claim in the bankruptcy filing, citing the price appreciation of liquidated tokens. For example, Bitcoin was trading at around $23,000 when Genesis filed for bankruptcy in January 2023.
US bankruptcy judge objected to the DCG claims in the bankruptcy, suggesting Genesis had to pay several creditors and settle nearly $32 billion before DCG could stake its claim.
Can the Crypto Market Absorb Heavy Liquidation?
At the time of liquidation, Genesis held nearly 170,000 ETH, of which the creditor received 114,000. The Genesis wallet has dumped most of the ETH and currently holds just over 900 ETH.
2024 has been a year of significant liquidations and market movement. Apart from Genesis’s liquidation, FTX is slated to reimburse creditors $16 billion starting next week. Mt. Gox exchange hack victims have also started to get their refunds.
The significant movement of funds from now-defunct firms has led to severe market volatility throughout the second quarter of 2024. However, the crypto market has managed to absorb the heat and get back on its feet.
ETH price is currently trading at $2,624, with little to no price movement over the past 24 hours, even when most other altcoins have recorded comparatively significant gains led by meme coins.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
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