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Bankrupt crypto lender Genesis sues Gemini to recover $689M worth of ‘Preferential Transfers’

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Bankrupt crypto lending platform Genesis Global Capital has filed a lawsuit against cryptocurrency exchange Gemini Trust to recover $689 million in preferential transfers, a court filing on Nov. 22 shows.

The lawsuit alleges that Gemini made preferential transfers of approximately $689,302,000″ from Genesis at the expense of other creditors and requested the court to correct the unfairness.

The two crypto giants have been embroiled in a public feud after the collapse of the FTX crypto exchange over the recovery of funds that escalated into lawsuits.

Earlier, Gemini filed an adversary proceeding against bankrupt Genesis on Oct. 27 to use 62,086,586 shares of Grayscale Bitcoin Trust (GBTC). These shares were used as collateral to secure loans made by 232,000 Gemini users to Genesis through the Gemini Earn Program. The collateral value grew to $1.6 billion as per current market conditions.

This is a developing story, and further information will be added as it becomes available.

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