Massive Ethereum sell-off after Genesis trading repayment

The largest creditor of Genesis Trading, a prominent player in the cryptocurrency market, has recently sold 12,100 Ethereum (ETH) after receiving a large repayment as part of the company‘s bankruptcy process.
According to data from Arkham Intelligence, the creditor sold this amount of Ethereum in just three days, with a total value of $31.43 million. This sale occurred shortly after Genesis Trading made a significant repayment in August as part of its liquidation process.

Creditor receives largest payout and begins ETH sale

The creditor, linked to the wallet address 0x999...46E, received the largest payout during the liquidation of Genesis Trading. On August 2, this wallet was credited with 114,502 ETH, valued at $358.19 million at the time. Despite holding a significant portion of the liquidation proceeds, the creditor quickly began selling off a large part of their Ethereum holdings.
The sale began on September 23, with ETH transferred to FalconX, a leading institutional crypto broker. Over the following days, a total of 12,100 ETH was transferred, with the largest transaction occurring on September 25, when 7,099 ETH was sold for $18.56 million.

Ethereum market reacts to sell-off

This large-scale sell-off comes amid ongoing uncertainties in the cryptocurrency market. Ethereum has shown sideways movements since its sharp rise between September 17 and 21. Over the past five days, ETH has traded between $2,529 and $2,703. However, the recent Ethereum sale by the Genesis creditor may add selling pressure to the market.

Genesis Trading bankruptcy and creditor repayments

Genesis Trading, a subsidiary of Digital Currency Group, filed for bankruptcy in early 2023 following several setbacks. As part of the Chapter 11 bankruptcy process, Genesis began repaying its creditors last month, distributing approximately $4 billion in crypto assets to affected parties. The creditor in question received the largest repayment from the liquidation.