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    <p>Crypto exchange Gemini Trust, cofounded by the Winklevoss twins, withdrew $280 million held in the firm’s lender, Genesis, just months before it collapsed and accounts were frozen, according to two sources familiar with the matter.</p> 
    <p>As reported by the New York Post (NYP) and subsequently Bloomberg, the huge sums were pulled from Genesis between August 5 and August 10 of last year. It’s unclear whether these funds were Gemini assets or the Winklevoss twins’ own crypto.</p> 
    <p>However, according to one of the sources, the <strong>withdrawn funds were used to create a reserve for Gemini Earn customers</strong> to make immediate redemptions.</p> 
    <ul> 
     <li>By November 16, Genesis had collapsed.</li> 
     <li>Gemini Earn customer deposits worth $900 million were frozen.</li> 
     <li>In January, Genesis filed for chapter 11 bankruptcy.</li> 
    </ul> 
    <h2 class="wp-block-heading" id="h-legal-disputes-pile-up-for-gemini-genesis-and-dcg">Legal disputes pile up for Gemini, Genesis, and DCG</h2> 
    <p>Since then, the <a rel="dofollow" title="Winklevoss" href="https://thebittimes.com/tag/winklevoss.html">Winklevoss</a> <a rel="dofollow" title="twins" href="https://thebittimes.com/tag/twins.html">twins</a> have publicly fought with <a rel="dofollow" title="Genesis" href="https://thebittimes.com/tag/genesis.html">Genesis</a>, its parent firm Digital Currency Group (DCG), and its founder, Barry Silbert, over the return of the $900 million in <a rel="dofollow" title="Gemini" href="https://thebittimes.com/tag/gemini.html">Gemini</a> Earn customer deposits. Mediations and negotiations have fallen through, resulting in <a rel="dofollow" title="Gemini" href="https://thebittimes.com/tag/gemini.html">Gemini</a> suing DCG for fraudulently covering up its insolvency in July this year.</p> 
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      <blockquote class="wp-embedded-content" data-secret="XNhZx1fA32">
       DCG fraudulently covered up 3AC-induced insolvency: Gemini lawsuit
      </blockquote><iframe class="wp-embedded-content" sandbox="allow-scripts" security="restricted" style="position: absolute; clip: rect(1px, 1px, 1px, 1px);" title="“DCG fraudulently covered up 3AC-induced insolvency: Gemini lawsuit” — Protos" src="https://protos.com/dcg-fraudulently-covered-up-3ac-induced-insolvency-gemini-lawsuit/embed/#?secret=X65YA0voT5#?secret=XNhZx1fA32" data-secret="XNhZx1fA32" width="500" height="282" frameborder="0" marginwidth="0" marginheight="0" scrolling="no"></iframe> 
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    <p><em>Read more: DCG misses $600M payment to Genesis as Gemini seeks resolution</em></p> 
    <p>The lawsuit claims that <a rel="dofollow" title="Gemini" href="https://thebittimes.com/tag/gemini.html">Gemini</a> tried to terminate its Earn product in mid-October 2022, before the $280 million in funds were withdrawn. One of the <a rel="dofollow" title="Winklevoss" href="https://thebittimes.com/tag/winklevoss.html">Winklevoss</a> <a rel="dofollow" title="twins" href="https://thebittimes.com/tag/twins.html">twins</a> apparently had an in-person meeting with Silbert, who said insolvency wasn’t on the horizon.</p> 
    <p>To make matters worse, Genesis sued DCG in September over $620 million in unpaid loans. And both Genesis and Gemini have been sued by the Securities and Exchange Commission (SEC) for selling unregistered securities through Gemini Earn.</p> 
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<p>Source: <a rel="dofollow" target="_blank" href="https://thebittimes.com/sources-say-winklevoss-twins-withdrew-280m-from-genesis-before-it-collapsed-tbt64327.html">https://thebittimes.com/sources-say-winklevoss-twins-withdrew-280m-from-genesis-before-it-collapsed-tbt64327.html</a></p>

Sources say Winklevoss twins withdrew $280M from Genesis before it collapsed

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