Genesis Sues Gemini to Recover $689M

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According to a court filing on November 22, the bankrupt crypto lending platform Genesis Global Capital has filed a lawsuit against cryptocurrency exchange Gemini Trust in an attempt to recover over $689 million in preferential transfers.

The lawsuit claims that Gemini made preferential transfers of approximately $689 million, which unfairly benefitted the exchange at the expense of other creditors.

In response, Genesis has requested that the court intervene and address the alleged unfairness of these transfers.

This legal battle has emerged in the aftermath of the collapse of the FTX crypto exchange, with both companies engaging in a public feud over the recovery of existing funds.

In October, Gemini had filed an adversary proceeding against bankrupt Genesis, seeking to use 62,086,586 shares of Grayscale Bitcoin Trust (GBTC) as collateral. These shares were initially used to secure loans made by 232,000 users of Gemini’s Earn Program to Genesis.