Gemini

Cryptocurrency

Bitcoin

Grayscale Bitcoin Trust

James

<figure>
 <figcaption>
 Cover image via <a href="https://u.today/" rel="noopener noreferrer nofollow">U.Today</a>
 </figcaption>
</figure>
<a href="https://u.today/genesis-ceo-requests-extra-time-to-resolve-lending-woes" rel="noopener noreferrer nofollow">Genesis Global Capital</a>has initiated legal action against Gemini Trust in significant development within the cryptocurrency industry. The&nbsp;<a href="https://restructuring.ra.kroll.com/genesis/Home-DocketInfo?DocAttribute=4768&amp;DocAttrName=GENESISGLOBALCAPITAL%2CLLCV.GEMINITRUSTCOMPANY%2CLLCETAL_Q&amp;MenuID=10577&amp;AttributeName=GGC%20v.%20Gemini%20Trust" rel="noopener noreferrer nofollow">lawsuit, filed on November 21</a>, seeks to recover a substantial sum of $689 million. Genesis claims these funds represent 'preferential transfers' made by Gemini. According to Genesis, these actions placed other creditors at a disadvantage, a situation they now wish to rectify legally.
This legal battle is not isolated but part of a broader context of disputes between major players in the cryptocurrency world. This conflict gained momentum following the collapse of the&nbsp;<a href="https://u.today/ftx-hacker-converts-75600-of-stolen-eth-heres-which-network-theyre-using" rel="noopener noreferrer nofollow">FTX crypto exchange</a>, leading to a series of lawsuits for fund recovery. Gemini had taken legal action against Genesis's parent company, Digital Currency Group (DCG), over allegations it labeled as defamatory. Subsequently, Genesis turned the tables by suing DCG to reclaim loans exceeding $600 million, backed by Grayscale Bitcoin Trust shares.
<h2 dir="ltr" id="genesis-alleges-gemini-exacerbated-financial-strain">Genesis alleges Gemini exacerbated financial strain</h2>
The complexity of this situation extends beyond corporate entities to involve U.S. regulatory bodies. Before<a href="https://u.today/bitcoin-btc-reacts-to-genesiss-bankruptcy-filing" rel="noopener noreferrer nofollow"> Genesis's bankruptcy</a> declaration, the U.S. Securities and Exchange Commission charged Genesis and Gemini with selling unregistered securities. Adding to the legal maelstrom, New York Attorney General Letitia James filed a lawsuit against DCG, Genesis, and Gemini, citing fraud against many investors.
Central to Genesis's lawsuit is the claim that during a period of market instability, Gemini initiated substantial withdrawals. According to Genesis, these actions exacerbated the financial strain, leading to a 'run on the bank' scenario. Specifically, in the 90-day preference period, Gemini's demand for loan repayments from Genesis, now argued as avoidable, is under scrutiny. Genesis contends that these transactions occurred under the shadow of its insolvency.
The fallout from Genesis's bankruptcy had a ripple effect across the cryptocurrency sector. Notably, the Gemini Earn program was impacted, leading to further legal action against DCG and its CEO, Barry Silbert.&nbsp;

Genesis vs. Gemini: New Twist in Cryptocurrency Controversy

Table of Contents

U_Today

Alte articole publicate pe 22 nov. 2023

Cybersecurity Tips to Protect Your Business on Black Friday

Binance CEO Richard Teng Highlights Business Strength Amidst $4B Settlement

This Crypto CRASHED when OpenAI’s CEO Sam Altman was Fired

Over $86M drained after HTX Global’s HECO Bridge security breach

CoinGecko expands crypto data API with Zash acquisition

The UK unleashes massive plan to supercharge its digital asset sector

Join our free newsletter for daily crypto updates!