In a significant move within the cryptocurrency realm, a wallet linked to Genesis Trading has transferred approximately $720 million worth of Bitcoin to the Coinbase exchange over the past month, hinting at the onset of potential asset liquidations.

During the last 30 days, this Genesis Trading-associated wallet has offloaded over 12,600 Bitcoin, valued around $719.9 million, primarily through transactions ranging from 500 to 700 BTC each.

As of now, the address holds 33,356 Bitcoin, a notable decrease from the over 46,000 BTC it held a month prior, according to Arkham Intelligence data.

These multimillion-dollar Bitcoin transfers come two months after Letitia James, the Attorney General of New York, announced a settlement with Genesis. This agreement necessitated the firm to pay $2 billion to investors defrauded through its Earn program. Additionally, the settlement mandates the return of funds to Genesis investors and prohibits the company from operating within New York.

Read more: Genesis to Return $3B in Customer Assets Under Finalized Bankruptcy Plan

Potential Recompense for Genesis Traders

The wallet linked to Genesis Trading might be preparing to begin compensating users, inferred from the substantial asset holdings and recent transfers to Coinbase.

Currently, the wallet boasts a total of $2.28 billion in cryptocurrency assets, with Bitcoin constituting the largest portion at $1.91 billion, followed by $364 million worth of Ether. This amount exceeds the $2 billion in digital assets that the platform was mandated to return to the defrauded investors of its Earn program.

On June 14, the New York Attorney General’s office announced the recovery of over $50 million from Gemini, intended for restitution to investors in the exchange’s Earn program. The settlement also barred Gemini from operating any cryptocurrency lending programs within New York state. James declared on X that “everyone that Gemini deceived will get their money back.” Gemini Trust assured affected Earn users that they could expect “100% of the assets owed to them” within seven days.

Read more: Genesis Digital Assets Weighs U.S. IPO Amid Expanding Mining Ventures

The Genesis Saga Unfolds

The New York Attorney General’s (NYAG) office initiated its lawsuit against Genesis in October 2023, later broadening it to encompass the Digital Currency Group, its CEO Barry Silbert, and former Genesis CEO Soichiro Moro.

The lawsuit accuses Gemini of defrauding 230,000 investors—including residents of New York—through its Earn program with Genesis Global Capital and failing to disclose associated risks.

Furthermore, the NYAG has filed a lawsuit against former Celsius CEO Alex Mashinsky for allegedly concealing the platform’s precarious financial condition. Mashinsky currently faces criminal charges in the US District Court for the Southern District of New York, related to securities fraud, wire fraud, and conspiracy to commit fraud, with his trial expected to commence in January 2025.