Gemini, a cryptocurrency exchange based in New York, has filed a lawsuit against digital asset lender Genesis over the ownership of $1.6 billion in Grayscale Bitcoin Trust (GBTC) shares.
Gemini, a cryptocurrency exchange based in New York, has filed a lawsuit against digital asset lender Genesis over the ownership of $1.6 billion in Grayscale Bitcoin Trust (GBTC) shares.
The case, filed in the United States Bankruptcy Court for the Southern District of New York, seeks to reclaim control of the shares in order to reimburse Gemini's Earn clients.
Genesis was a lending partner for Gemini's Earn product, however following the collapse of FTX and accompanying industry chaos, Genesis banned withdrawals, leaving Earn consumers without access to their assets. Gemini attempts to recoup the funds needed to pay its clients' claims and says that Genesis is impeding the process.
GBTC gained 205.73% so far this year, outperforming Bitcoin (BTC)’s 106% year-to-date gain. This is largely due to the closing of the discount in net asset value (NAV), spurred on by investors’ optimism of an imminent spot Bitcoin ETF approval.
Genesis is part of Digital Currency Group (DCG), which also controls the Grayscale Bitcoin Trust. Genesis declared bankruptcy earlier in January, and has stopped operating last month.
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