摘要：Genesis Global Capital has escalated its legal battle against Gemini, one of the leading cryptocurrency exchanges, ...
Genesis Global Capital has escalated its legal battle against Gemini, one of the leading cryptocurrency exchanges, filing a lawsuit aiming to recover a staggering $689 million in preferential transfers. The court filing, dated November 21, details a contentious series of transactions that have fueled the rift between the two entities, shining a light on allegations of unfair advantage and financial maneuvers.
The crux of Genesis Global Capital’s lawsuit revolves around the claim that Gemini, within the critical 90-day window preceding Genesis’ declaration of bankruptcy in January, withdrew an astronomical sum, significantly impacting other creditors. The lawsuit contends that Gemini’s actions continue to benefit them by holding onto assets that Genesis seeks to reclaim. In response, Genesis’s legal representation has urged the court to utilize remedies outlined in the United States Bankruptcy Code to rectify what they perceive as unfairness and to ensure equitable treatment of all creditors.
This legal clash is the culmination of a tumultuous series of events that have unfolded in the crypto realm, particularly following the collapse of FTX, a crypto exchange, in November of the prior year. The rift between Genesis and Gemini gained momentum when Genesis, facing bankruptcy, sought financial recovery and stability. However, this endeavor seemingly intensified the conflict between the two giants, with lawsuits and counter-lawsuits becoming the norm.
Genesis, a subsidiary of Digital Currency Group (DCG), had been embroiled in legal disputes earlier in the year, including a lawsuit against its parent company, DCG, demanding repayment of substantial loans. Meanwhile, Gemini, founded by the Winklevoss twins, Tyler and Cameron, sued Genesis over 60 million shares of the Grayscale Bitcoin Trust (GBTC) valued at approximately $1.6 billion.
The recent court filing alleges that Gemini, taking advantage of market turmoil following the collapses of Terraform Labs and digital asset hedge fund Three Arrows Capital, engaged in significant and unprecedented withdrawals during the critical 90-day period before Genesis filed for bankruptcy. These actions, deemed “avoidable” in the filing, were allegedly made with the knowledge that Genesis was facing insolvency.
These developments underscore the intricate interplay between major players in the crypto sphere and the legal complexities emerging within an evolving financial landscape. The lawsuit signifies a pivotal moment in the struggle for financial restitution and fairness within the crypto industry, as Genesis Global Capital seeks to recover substantial funds in the wake of its bankruptcy declaration.
Source: https://azcoinnews.com/genesis-global-capital-pursues-689-million-claim-against-gemini-exchange-in-legal-showdown.html
