BTC, ETH Rebound Even as Genesis Continues Repayments

Less than two hours after BTC reclaimed $59,000, now bankrupt centralized crypto lending platform Genesis has moved $13 million in funds to repay victims of their collapse.

The repayments began 6 days ago after Genesis Trading moved $1.5 Billion in BTC and ETH to a wallet labeled as bankruptcy repayment by data analysis website Arkham Intelligence.

Despite the sell pressure, BTC is up 7.5% in the last 24 hours to $59,600 and ETH is up 9.3% to $2580. With this rally BTC and ETH have nearly erased their massive losses from last weekend, when the digital assets plunged by 20% and 27%, respectively.

Last time Genesis started repaying former clients, on Aug 2, the BTC price fell by 6% from $64,650 to $60,704. Genesis, formerly a part of Barry Silbert’s Digital Currency Group” is a defunct centralized crypto lending platform that declared bankruptcy in 2023 as a result of the collapse of Three Arrows Capital (3AC) in 2022. 3AC owed Genesis over $2 billion, and the inability to repay left Genesis high and dry.

Genesis was ordered to pay $3 billion to its customer as a result of the bankruptcy claim.