A key crypto wallet at Genesis Global Trading moved a substantial amount of ether (ETH) around the same time the trading firm’s sibling filed for bankruptcy protection last week.
The over-the-counter trading desk’s wallet transferred out 75,000 ETH to various crypto exchanges on Jan. 19. A CoinDesk analysis shows that’s the fifth-biggest single-day movement ever.
The days with a bigger ETH outflow from the wallet – which all took place last year – coincided with major milestones for Genesis. Here are the bigger days for the wallet, which has an address beginning with 0xd62:
- On Aug 15, Genesis transferred out 94,595 ETH: Two days later then-CEO Michael Moro exited the company and 20% of its 260-person workforce was eliminated.
- On Sept. 30, Genesis transferred out 82,556 ETH: Co-Head of Sales and Trading Matt Ballensweig had announced his decision to leave two days before.
- On Oct. 25, Genesis transferred 108,974 ETH: This was several days after Chief Risk Officer Michael Patchen exited the company after only three months in the job.
- On Nov. 9, Genesis transferred out 86,220 ETH: As FTX was collapsing, Digital Currency Group, the parent of both Genesis and CoinDesk, gave an equity infusion of $140 million to Genesis Global Trading two days later. In the middle of November, Genesis’ lending division, Genesis Global Capital, suspended customer redemptions and new loan originations.
Last week’s bankruptcy filing by Genesis Global Capital, the lending business, raised doubts about its future, but the movement of money suggests its related entity, trading firm Genesis Global Trading, continues to operate.
The OTC desk wallet continues to transact on the Ethereum blockchain as Genesis’ bankruptcy unfolds. Since Jan. 21, the wallet has sent out 24,000 ETH, worth some $39 million, and received $92 million in USDC and USDT, as of press time.
Genesis did not return a request for comment.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.