Genesis Trading Files Bankruptcy, Transfers $100M in Crypto Assets to Exchanges

• Genesis Trading, a distressed institutional crypto lending and trading protocol, has transferred digital assets from its wallets to exchanges after filing for bankruptcy protection.
• Genesis Global Capital, LLC and Genesis Asia Pacific Pte. Ltd., filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York.
• Blockchain security firm PeckShieldAlert highlighted several transactions worth over $100 million believed to have originated from Genesis Trading towards several centralized cryptocurrency exchanges.

Genesis Trading, a distressed institutional crypto lending and trading protocol, has made transfers of digital assets from its wallets to exchanges after filing for bankruptcy protection. Notably, Genesis Global Capital, LLC and Genesis Asia Pacific Pte. Ltd., filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York on January 19.

Genesis noted that though it has suspended its lending business, it has filed with the court to continue with its daily operations normally. The company stated that it has more than $150 million in cash on hand which will provide ample liquidity to support its ongoing business operations and facilitate the restructuring process. Furthermore, Genesis has filed a number of customary „first-day“ motions with the court to enable day-to-day operations to continue in the normal course.

Today, blockchain security firm PeckShieldAlert highlighted several transactions worth over $100 million believed to have originated from Genesis Trading towards several centralized cryptocurrency exchanges. Among the transferred digital assets include Ethereum (ETH), Tether USDT, and Circle’s USDC. The transactions were made to exchanges such as Coinbase, Bitstamp and Kraken.

This news comes at a time when the cryptocurrency market is in a state of flux, with some tokens having skyrocketed in value while others have fallen to record lows. It remains to be seen how Genesis’ bankruptcy filing and transfers of digital assets to exchanges will affect the market in the coming days and weeks.