Genesis Bankruptcy: 0xd62 Makes Massive ETH Transfer, Trading Business in Limbo

• 0xd62, a Genesis OTC wallet, recently made one of the largest ETH transfers ever, just as Genesis Global Holdco LLC, its corporate sibling, filed for bankruptcy.
• Lisa Bragança, former SEC Enforcement Branch Chief and Bragança Law Managing Partner, discusses the first bankruptcy hearing and whether Genesis’ trading business is free of liability.
• The wallet, owned by Digital Currency Group, has been seen to move money around on blockchains, coinciding with big events at the company.

As Genesis Global Holdco LLC, the holding company of troubled cryptocurrency lender Genesis Global Capital, filed for Chapter 11 bankruptcy protection in late January, its corporate sibling, 0xd62, a Genesis OTC wallet, made one of the biggest movements of ETH ever. The wallet, owned by Digital Currency Group (DCG), has been seen to move money around on blockchains, coinciding with big events at the company.

The bankruptcy filing comes after the company was pummeled by two of the biggest industry collapses of 2022. Despite the turbulent history, the trading arm of the Genesis continues to move money around on blockchains. This recent ETH transfer was one of the largest ever, with speculation of similar activity potentially being seen in the future.

The potential implications of the bankruptcy filing has been a cause for concern as to whether Genesis’ trading business is free of liability. Lisa Bragança, former SEC Enforcement Branch Chief and Bragança Law Managing Partner, spoke to Nansen to discuss what to expect from Genesis’ first bankruptcy hearing, and whether the trading business can remain unaffected. Bragança commented that the court will assess the value of the assets and liabilities, and then determine a plan of action to distribute funds to creditors. The court will also assess the potential for certain creditors to remain unaffected from bankruptcy proceedings, such as the trading business.

As the court proceeds with the bankruptcy hearing, questions remain as to what will become of the Genesis trading business and whether it will remain unaffected. With 0xd62’s recent large ETH transfer, and its tendency to coincide with major events at the company, the future of the Genesis trading business remains to be seen.