Genesis Global Capital Sues Gemini Trust in $689M Preferential Transfer Dispute
Summary:
Genesis Global Capital has initiated legal proceedings against crypto exchange Gemini Trust, aiming to recover $689 million related to preferential transfers, as per a court filing on November 22. Following the fallout from the FTX crypto platform, a dispute between these crypto giants ensued over the restitution of resources, sparking more lawsuits. The value of collateral for loans issued through the Gemini Earn Program has now increased to $1.6 billion due to current market conditions.
In recent news, Genesis Global Capital, a crypto lending platform, has instigated legal proceedings against Gemini Trust, a leading cryptocurrency exchange. The aim is to secure a recovery of $689 million, linked to preferential transfers, as indicated by a court filing on November 22. This suit accuses Gemini of favoring transfers of approximately $689,302,000 – taken from Genesis, to the detriment of other creditors. It calls upon the court for rectification of this inequality. A public disagreement between the two crypto heavyweights has been ongoing, fuelled by a crisis at the FTX crypto exchange, and concerns over the restitution of financial resources, spawning additional lawsuits. Gemini had previously initiated an adversary proceeding against the now-bankrupt Genesis on the 27th of October, seeking the usage of 62,086,586 GBTC (Grayscale Bitcoin Trust) shares. These shares had been allocated as security for loans issued by Gemini users, numbering up to 232,000, to Genesis, through the Gemini Earn Program. Based on current market conditions, the value of this collateral has increased to $1.6 billion. Further updates on this developing story will be provided as they arise.
Published At
11/22/2023 8:00:26 AM
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