Gemini Trust Sues Genesis Global Capital for $689 Million
Genesis Global Capital sues Gemini Trust for $689M amid bankruptcy, claiming unfair fund withdrawal and creditor harm.
Crypto lender Genesis Global Capital is suing its ex-partner Gemini Trust for $689 million Genesis alleges Gemini took this money unfairly, harming other creditors, and wants the court to correct this.
The conflict began with the collapse of FTX. Genesis is a subsidiary of Digital Currency Group (DCG), which declared bankruptcy in January. In July, DCG was sued by Gemini, which DCG called "defamatory." Genesis sued DCG in September for almost $600 million in debt repayments. Then, in October, Gemini sued Genesis over $1.6 billion in shares. The Winklevoss twins operate Gemini.
This case also caught the interest of US authorities. The SEC accused Genesis and Gemini of marketing unregistered securities shortly before Genesis' bankruptcy.
The Attorney General of New York filed a lawsuit against DCG, Genesis, and Gemini last month, alleging that they duped investors out of almost $1 billion.
According to the lawsuit, Gemini took away substantial sums of money just before Genesis' insolvency during the crypto market instability. Genesis experienced a financial problem as a result of this. Gemini had demanded repayment for previous loans, which Genesis now claims were unfair and occurred when Genesis was in financial distress.
