Genesis Files Lawsuit Against Former Business Partner Gemini Trust, Seeking to Recover $689 Million
Crypto lender Genesis Global Capital has taken legal action against cryptocurrency exchange Gemini Trust in an attempt to reclaim over $689 million.
The lawsuit was filed in the US Bankruptcy Court for the Southern District of New York on Tuesday, alleging that Gemini engaged in preferential transfers that amounted to approximately $689,302,000, disadvantaging other creditors.
The court filing claims that during the market turmoil caused by the collapse of Terraform Labs and digital asset hedge fund Three Arrows Capital, Gemini made unprecedented withdrawals before Genesis declared bankruptcy.
These withdrawals, occurring within a 90-day period known as the preference period, involved the repayment of previous loans extended to Genesis.
According to the lawsuit, these transfers were avoidable and made with the knowledge that Genesis was insolvent.
The dispute between Genesis and Gemini dates back to the collapse of FTX, which triggered a series of public and legal conflicts.
In January, Genesis filed for bankruptcy , with its parent company, Digital Currency Group (DCG), subsequently facing a lawsuit from Gemini in July.
The lawsuit accused DCG of making defamatory statements and engaging in a publicity stunt.
In response, Genesis sued DCG in September, seeking repayment for multiple loans totaling over $600 million.
In October, Gemini fired back by suing Genesis over 60 million shares of the Grayscale Bitcoin Trust (GBTC) , valued at around $1.6 billion.
The legal battles between Gemini and Genesis have also seen US authorities become involved.
In January, just before Genesis filed for bankruptcy, the U.S. Securities and Exchange Commission (SEC) accused Genesis and Gemini of selling
Read more on cryptonews.com
