A significant Ethereum whale that previously received 114,500 ETH—valued at $358 million—as part of the Genesis Global bankruptcy compensation has resumed selling, offloading 40,000 ETH in just two days.
After holding onto its massive Ethereum holdings for six months, the whale began liquidating its assets amid a broader market downturn. According to blockchain analytics platform Arkham, the address in question has sold 40,000 ETH worth approximately $89 million.
Blockchain data reveals that the wallet, identified as “0x999E,” was the largest Ethereum recipient from the now-defunct crypto lending firm Genesis Global. Genesis, which filed for Chapter 11 bankruptcy in January 2023, distributed around $4 billion in digital assets to creditors last August as part of its restructuring plan.
Despite an initial pledge to return 65.87% of creditors’ Ethereum holdings, market price fluctuations ultimately compensated for the reduction. The whale’s 114,500 ETH allocation was initially worth $358 million. However, with Ethereum’s price declining by more than 30% since the time of distribution, the wallet’s value has decreased by roughly $110 million.
Arkham’s data indicates that the whale distributed its Ethereum holdings to major trading platforms, sending 30,000 ETH to Galaxy Digital and another 10,000 ETH to FalconX over the past two days. In return, the wallet received Circle’s USDC stablecoin from both over-the-counter (OTC) platforms, confirming the sales. Specifically, Galaxy Digital transferred 20 million USDC to the whale’s wallet, while FalconX sent 19.49 million USDC the previous day.
These sales have sparked speculation within the crypto community regarding the whale’s future intentions. Some investors are questioning whether the address will continue offloading Ethereum or if this was a strategic one-time sale. Despite these recent transactions, the wallet still retains a substantial 100,252 ETH, valued at approximately $218 million—over 84% of its total crypto portfolio.
Interestingly, Ethereum has shown resilience despite the whale’s significant sell-off. The asset briefly dropped below $2,000 for the first time since November 2023 but rebounded to close at $2,170. This positive momentum has carried into today’s trading session, with Ethereum rising by 1.2% to $2,200. Currently, Ethereum maintains its position as the second-largest cryptocurrency, boasting a market capitalization of $265 billion.
While the whale’s recent liquidation has fueled discussions about market sentiment, Ethereum’s ability to recover indicates sustained investor confidence in the asset’s long-term potential. The coming weeks will reveal whether this whale continues to sell or decides to hold onto its remaining ETH stash.
By Alejandro Silva Ramírez, Crypto Analyst & Columnist