Background of the Creditor’s Involvement
This move follows a substantial repayment received from Genesis Trading as part of its liquidation process in August. The creditor, identifiable by the wallet address 0x999…46E, was the largest beneficiary during the Genesis Trading creditor repayments.
- On August 2, this wallet was credited with 114,502 ETH, worth around $358.19 million at the time.
- Despite this large allocation from the liquidation proceeds, the creditor has begun to sell off a significant portion of their holdings.
Details of the Ethereum Sell-Off
The sell-off commenced on September 23, when the wallet started transferring ETH to FalconX, a leading institutional cryptocurrency brokerage firm. Over the next few days, the creditor completed transfers totaling 12,100 ETH, with the latest transaction taking place on September 25 at 15:39 UTC.
This recent transfer included 7,099 ETH, valued at approximately $18.56 million.
Market Implications and Current Trends
This large-scale liquidation coincides with ongoing uncertainties in the market. Ethereum has experienced sideways movements since its rapid spike from September 17 to September 21. Currently, ETH is trading within a range of $2,529 and $2,703 over the past five days.
However, the recent sales by the Genesis creditor could contribute to increased selling pressure in the market.
Genesis Trading Bankruptcy Overview
It is important to recall that Genesis filed for bankruptcy earlier in 2023 after facing significant setbacks, including challenges with its parent company, Digital Currency Group. As part of its Chapter 11 bankruptcy proceedings, Genesis initiated repayments to its creditors last month, distributing approximately $4 billion in crypto assets to those affected.
The creditor in question received the largest repayment from this liquidation, emphasizing the scale of the ongoing market developments.
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