Gemini

Bitcoin

Grayscale Bitcoin Trust

James

<div class="watcher-guru">
 <p>A substantial legal dispute has arisen between <a rel="noopener noreferrer nofollow" title="Genesis" href="https://thebittimes.com/tag/genesis.html">Genesis</a> Global Capital and Gemini Trust. <a rel="noopener noreferrer nofollow" title="Genesis" href="https://thebittimes.com/tag/genesis.html">Genesis</a>, a <a rel="noopener noreferrer nofollow" title="cryptocurrency" href="https://thebittimes.com/tag/cryptocurrency.html">cryptocurrency</a> lender, has initiated legal proceedings against its former partner, Gemini, aiming to recover a sum exceeding $689 million. The filed court documents, submitted, asserted that Gemini conducted preferential transfers totaling around $689,302,000, disadvantaging other creditors. This has ignited a contentious legal clash that sheds light on the intricacies and obstacles within the <a rel="noopener noreferrer nofollow" title="cryptocurrency" href="https://thebittimes.com/tag/cryptocurrency.html">cryptocurrency</a> sector.</p>
 <h4 class="wp-block-heading" id="h-origins-of-the-conflict">Origins of the Conflict</h4>
 <p>The Genesis-Gemini conflict can be traced back to the collapse of FTX. This was a pivotal event that set the stage for a series of legal and public confrontations. Faced with financial instability, Genesis filed for bankruptcy in January. Subsequently, its parent company, Digital Currency Group (DCG), encountered legal action from Gemini in July. This was with Gemini dismissing the claims as “defamatory” and a “publicity stunt.” The legal saga persisted as Genesis counter-sued DCG in September, seeking repayment for loans surpassing $600 million. In October, the firm took legal action against Genesis concerning 60 million shares of the Grayscale Bitcoin Trust (GBTC). This was valued at approximately $1.6 billion.</p>
 <p><strong>Also Read: <a rel="noopener noreferrer nofollow" title="Genesis" href="https://thebittimes.com/tag/genesis.html">Genesis</a> Crypto Broker Halts Withdrawals</strong></p>
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 <h4 class="wp-block-heading" id="h-principal-allegations-and-legal-actions">Principal Allegations and Legal Actions</h4>
 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="536" src="https://cdn.thebittimes.com/images/2023/11/22/b725a90f5a272247c4e987ddf6b74ca1.webp" alt class="wp-image-119726" srcset="https://cdn.thebittimes.com/images/2023/11/22/b725a90f5a272247c4e987ddf6b74ca1.webp 1024w, https://cdn.thebittimes.com/images/2023/11/22/b725a90f5a272247c4e987ddf6b74ca1.webp 300w, https://cdn.thebittimes.com/images/2023/11/22/b725a90f5a272247c4e987ddf6b74ca1.webp 768w, https://cdn.thebittimes.com/images/2023/11/22/b725a90f5a272247c4e987ddf6b74ca1.webp 380w, https://cdn.thebittimes.com/images/2023/11/22/b725a90f5a272247c4e987ddf6b74ca1.webp 550w, https://cdn.thebittimes.com/images/2023/11/22/b725a90f5a272247c4e987ddf6b74ca1.webp 800w, https://cdn.thebittimes.com/images/2023/11/22/b725a90f5a272247c4e987ddf6b74ca1.webp 1160w, https://cdn.thebittimes.com/images/2023/11/22/b725a90f5a272247c4e987ddf6b74ca1.webp 1200w" sizes="(max-width: 1024px) 100vw, 1024px">
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 <p>In the ongoing clash, <a rel="noopener noreferrer nofollow" title="Genesis" href="https://thebittimes.com/tag/genesis.html">Genesis</a> alleges that Gemini engaged in preferential transfers amid market turmoil triggered by the collapse of LUNA and TerraUSD. This was further coupled with challenges faced by the digital asset hedge fund Three Arrows Capital. As per the court filing, Gemini executed “unprecedented withdrawals” before <a rel="noopener noreferrer nofollow" title="Genesis" href="https://thebittimes.com/tag/genesis.html">Genesis</a> filed for bankruptcy, contributing to what <a rel="noopener noreferrer nofollow" title="Genesis" href="https://thebittimes.com/tag/genesis.html">Genesis</a> describes as a “run on the bank.”</p>
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 <p>During the ninety-day preference period, Gemini allegedly insisted on the repayment of previous loans extended to Genesis. These were transfers that the filing deems “avoidable.” Genesis asserts that these actions occurred with the knowledge that the company was insolvent. The lawsuit seeks to rectify what Genesis perceives as unfair treatment. It further aims to address the preferential benefits granted to Gemini at the expense of other creditors.</p>
 <p>The <a rel="noopener noreferrer nofollow" title="Genesis" href="https://thebittimes.com/tag/genesis.html">Genesis</a>-Gemini dispute has not escaped the attention of U.S. authorities. In January, just days before <a rel="noopener noreferrer nofollow" title="Genesis" href="https://thebittimes.com/tag/genesis.html">Genesis</a> filed for bankruptcy, the U.S. Securities and Exchange Commission (SEC) accused both <a rel="noopener noreferrer nofollow" title="Genesis" href="https://thebittimes.com/tag/genesis.html">Genesis</a> and Gemini of selling unregistered securities. Recently, in a heightened escalation of legal actions, New York Attorney General Letitia James filed a lawsuit against DCG, <a rel="noopener noreferrer nofollow" title="Genesis" href="https://thebittimes.com/tag/genesis.html">Genesis</a>, and Gemini. The lawsuit alleges that the trio defrauded over 230,000 investors, including at least 29,000 New Yorkers, of more than $1 billion.</p>
 <p><strong>Also Read: New York Attorney General Files Lawsuit Against Gemini, Genesis and DCG</strong></p>
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<div class="cs-entry__tags">
 <ul>
  <li>crypto</li>
  <li>cryptocurrency</li>
  <li>GEMINI</li>
  <li>Genesis</li>
 </ul>
</div>
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/gemini-in-hot-water-genesis-seeks-recovery-of-689m-in-lawsuit-tbt71172.html">https://thebittimes.com/gemini-in-hot-water-genesis-seeks-recovery-of-689m-in-lawsuit-tbt71172.html</a></p>

Gemini in Hot Water: Genesis Seeks Recovery of $689M in Lawsuit

TheBitTimes

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