Genesis Moves $27 Million ETH

Close to 23,000 eth moved to a new address earlier today for the first time in four years with it apparently originating from Genesis.

“2 Dormant addresses transferred 22,982 $ETH (~27.2M) to 2 fresh addresses, their last movement was October 2018 (1,535 days ago),” PeckShield says. “These ETH originated from Genesis and Poloniex.”

From the description this may have been an old cold wallet, with the movements shown below looking like wallet management, rather than external transfers.

Blockchain data require some guesswork and estimates to make sense, and there has been a significant amount of movement here to be sure the recent transfer is actually from Genesis, but in context that might be the case.

Assets related to the Digital Currency Group (DCG) dived on Friday, leading some to speculate they were being liquidated to cover a hole thought to be as much as $2 billion at Genesis Capital, a subsidiary of DCG.

Furthermore Cameron Winklevoss, the co-founder of Gemini, a crypto exchange that provided a staking service through Genesis, said on Saturday:

“Houlihan Lokey, the Financial Advisor of the Creditor Committee, has begun advocating for a plan to resolve the liquidity issues at Genesis and DCG and provide a path for the recovery of funds.”

Now, if this movement is actually from Genesis, that may indicate they’re going through any and all assets they have left to see what amount can be raised to resolve the issue.

The $30 million in this case won’t do that much, but as indicative of their activity it may show they’re going through their sofa and pockets to see what is left everywhere.

There may therefore be some movement on their suspension of withdrawals last month, but some creditors have become sufficiently worried that rumors suggest they’re selling their claim at 35p per dollar.

As such, whether this small movement of old coins will alleviate those concerns remains to be seen, with Genesis itself continuing to not provide much clarity a month on since suspending withdrawals.