On-chain data shows that Genesis has sent nearly 830 million USD in Bitcoin and other cryptocurrencies to the exchange in the past month.
Over the past month, the attention of the cryptocurrency investment community has been focused on daily Bitcoin liquidation transactions by German authorities, a country that confiscated 50,000 BTC from criminal activity earlier this year. and has started selling since the end of June.
According to Arkham statistics, on July 12, German officials sent 5,848 BTC to the exchange, worth 330 million USD. Currently, the country's Bitcoin wallet only holds less than 222 million USD in BTC, indicating that Germany's Bitcoin liquidation streak may be coming to an end.
LATEST: The German Government just sent another 2300 BTC ($132.61M) to Kraken, 139Po (likely institutional deposit/OTC service), and address bc1qu.
So far today, they have transferred a total of 5848 BTC ($330.00M) to market makers and exchanges.
The German Government now has… pic.twitter.com/fn10uuSDQV— Arkham (@ArkhamIntel) July 12, 2024
It was thought that the "nightmare" was about to end, but the cryptocurrency community has just discovered another "whale" that has been quietly dumping Bitcoin in recent times, which is Genesis Trading - a money lending company. crypto filed for bankruptcy in early 2023.
The address marked as "Genesis Trading" by Arkham has transferred a total of 12k BTC to Coinbase in the past month, worth about $760 million. It is suspected to be in bankruptcy liquidation procedures and currently holds about 33,000 BTC, worth $1.9 billion. In May this year,…
— Wu Blockchain (@WuBlockchain) July 12, 2024
Specifically, data from Arkham shows that Genesis has sent 12,691 BTC (~793 million USD) to Coinbase in the past month, mainly in transactions from 500 to 700 BTC/time.
In addition, Genesis' crypto wallets also sent 37.7 million USD of altcoins held such as ETH, GALA, WBTC, USDC,... to Coinbase, Binance, Cooperative,... - bringing the total value of deposits to 10. amount of 830 million USD, with a high probability of being for sale.
Arkham's statistics show that the value of crypto assets in the Genesis wallet cluster has decreased from 3.6 billion USD in mid-June 2024 to 2.2 billion USD at the time of writing, mainly below in the form of Bitcoin (1.9 billion USD) and Ethereum (355 million USD), the rest are countless other low-value altcoins.
Genesis' crypto liquidation transactions began shortly after the company in late May 2024 received approval from the US bankruptcy court for a plan to return $3 billion in assets to customers.
As reported, Genesis is a lending company owned by Digital Currency Group, which also owns Grayscale. During the cryptocurrency industry's liquidity crisis in 2022, Genesis suffered heavy losses from the bankruptcy of Three Arrows Capital, then was forced to make shady internal transactions with Digital Currency Group to stay afloat. Maintain a stable face.
However, in November of the same year, when the FTX exchange collapsed, Genesis's financial vulnerability became apparent and also implicated users of the Gemini exchange, the platform that lent money to Genesis. Genesis in January 2023 had to declare bankruptcy, of which Gemini was the largest creditor with more than 900 million USD in assets of Earn users.
Gemini then filed a lawsuit against Digital Currency Group and its head, Mr. Barry Silbert, exposing the wrongdoings of this group of companies. The case even attracted the attention of the New York State Attorney General's Office (USA) and the US Securities Commission (SEC). Genesis then agreed to pay fines of $8 million and $21 million to these regulators, respectively. The company since the beginning of 2024 has converted assets in the form of GBTC shares back to Bitcoin, with a value of 2 billion USD.
In addition to Germany and Genesis, the cryptocurrency industry is also witnessing many other "whales" waiting to sell tokens, the most notable of which is Mt. Gox with a Bitcoin warehouse of more than 8 billion USD has begun the process of refunding users since the beginning of July, along with the Golem project with an Ethereum warehouse of more than 650 million USD.
July 11 continues to be the day German authorities transferred large amounts of Bitcoin to exchanges, on-chain data shows. The German government's Bitcoin (BTC) treasury is gradually depleted after sell-offs of hundreds of millions of dollars in the past few weeks. The most recent transfer was on the evening of July 11, a total of 10,627 BTC (615.33 million USD) to Flow Traders, Coinbase, Kraken, Bitstamp, 139Po and bc1qu. As continuously updated, German authorities last month "hastily" sold the Bitcoin confiscated from the pirated movie website Movie2k.to, which was blocked in 2013. German police have frozen nearly 50,000 BTC worth nearly 3 billion USD earlier this year. This is also the largest Bitcoin confiscation in the history of the Federal Republic of Germany. In June, Germany sold a total of 900 Bitcoins, equivalent to about 55 million USD. Entering the first week of July, the country continuously moved Bitcoin, peaking on July 10, with a deposit order of 630 million USD. Most were sent to Kraken, Bitstamp and Coinbase for sale, or OTC liquidation to market makers Cumberland and Flow Traders. After a series of past transactions, the wallet linked to the German government currently holds only 4,925 BTC, worth 285 million USD according to the exchange rate on July 12. At the current rate, Germany's "nightmare" of sell-off may soon end today or early next week. The German government's series of Bitcoin liquidations has put a lot of pressure on the world's largest cryptocurrency and investor psychology. Bitcoin price at one point plummeted below 55,000 USD - the lowest level since February this year. The fear and greed index also decreased to the level when Bitcoin was 17,000 USD in early 2023. But not everyone is satisfied with the above decision to sell Bitcoin. Joana Cotar, a member of the German Parliament, has called on the government to stop selling Bitcoin and instead hold it as a hedge. Not only Germany, but governments around the world still hold 17.8 billion USD in Bitcoin. The US government alone has confiscated up to 12 billion USD in Bitcoin, and recently transferred 240 million USD in BTC related to the Silk Road black market to Coinbase. On top of that is the “ghost” of bankrupt Mt.Gox, which began disbursing 140,000 BTC to creditors this month, after 10 years of waiting.
