Arkham Intelligence data shows that the bankrupt crypto lender, Genesis Global transferred 5,000 ETH worth $13 million this week.
This comes amid ongoing legal battles and the multi-billion dollar settlement with investors.
Meanwhile, the Ethereum ETFs have seen a strong rebound with the third biggest inflows since July.
Genesis Global, the now-bankrupt crypto lending platform, has once again made headlines.
This time around, the firm transferred around 5,000 ETH, worth a staggering $13 million.
This is particularly interesting, considering how the company is currently grappling with the aftereffects of its collapse in January 2023, shortly after FTX did.
What is going on with the ongoing legal dispute and the efforts to pay back creditors?
According to recent data from Arkham Intelligence, the 5,000 ETH in question was transferred to a deposit address tied to FalconX (which is a popular crypto brokerage firm).
But this isn't the most intriguing thing about the transaction.
These funds were moved by an unidentified wallet, which is only suspected to belong to Genesis.
$13 million in ETH moved
Moreover, the transaction was part of a larger movement of funds, to the tune of over 114,503 ETH.
This stash, equal to around $360 million, was promptly transferred to an unnamed wallet.
But this isn’t all.
Despite these massive transactions, the unidentified Genesis wallet still holds around $424.74 million in Ethereum, SUSHI, HEX and a host of other tokens.
Other assets in the account
Plus, this comes at a time when the company is attempting to navigate through its troubles, both financial and legal.
Genesis was once a dominant player in the crypto lending space but has since fallen into bankruptcy due to the liquidity issues triggered by FTX and some other factors.
The company is a subsidiary of Digital Currency Group, which is an investment firm founded by Barry Silbert.
Its woes with severe liquidity issues started in November 2022 after the collapse of Three Arrows Capital.
The failure of the hedge fund, combined with that of FTX and then Genesis sent shockwaves through the crypto market.
Filing for Bankruptcy
Amid the confusion, Genesis and many other companies found themselves unable to meet withdrawal demands from clients.
These requests continued to pile up and eventually forced the lending platform to halt withdrawals and eventually file for bankruptcy in early 2023.
So far, the issues with transparency and corporate governance have continued to haunt the crypto industry until date.
The events that followed, triggered a wave of legal action. Some of these included a lawsuit filed by New York Attorney General Letitia James.
Within the suit, companies like Gemini, Genesis and DCG were named and accused of hiding massive financial losses from investors.
Suing several firms
The figure involved in the lawsuit was pegged at around $1.1 billion initially.
However, as the investigation went on, things quickly ballooned to over $3 billion, in one of the messiest lawsuits of 2023.
In May of the same year, a U.S. bankruptcy court approved Genesis Global’s liquidation plan to return roughly $3 billion to investors.
Soon after this, the company reached a $2 billion settlement with the New York Attorney General’s office.
A few months later in August, Genesis was already distributing nearly $4 billion in fiat and crypto to investors.
While all of these factors have been instrumental in bringing normalcy back into the market, it is still unclear whether all the affected parties will receive their full compensation.
Meanwhile, the Ethereum market has been through its own version of ups and downs.
The ETF market, in particular, saw a massive rebound on 24 September this week.
Data from Farside and Soso Value show that it saw inflows of around $62.5 million.
Interestingly, this marks the third largest day of inflows since the July launch.
BlackRock’s ETHA fund led the funding round, with $59.3 million in inflows (its highest since 9 August).
The Ethereum fund inflows
This rebound came only a day after the sector saw its largest flow since July.
Interestingly, despite the strong inflow day, the total outflows from the market have amounted to around $624.4 million.
This shows that the market’s traders are currently going through a period of uncertainty considering Ethereum compared to Bitcoin.
Overall as Genesis Global works to rebuild its finances, the multi-million dollar settlement shows ongoing efforts to return assets to the affected parties.
According to data from CoinMarketCap, Ethereum trades at around $2,615 at the time of writing.
Ethereum’s ongoing price
It hasn't moved by much in the last 24 hours before press time but is up by an impressive 13.33% on the weekly.
Ethereum's strength so far shows that investor interest in the asset remains strong, even as the volatility issues persist.
Both the Genesis saga and the Ethereum ETF movements show how quickly the industry is moving.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.