Crypto lending platform Genesis Global Capital has filed a lawsuit against cryptocurrency exchange Gemini Trust to recover $689 million in preferential transfers, according to a court filing on Nov. 22.
Allegations of Unfairness
The lawsuit claims that Gemini made preferential transfers of approximately $689,302,000 from Genesis at the expense of other creditors. Genesis is seeking to have the court rectify this alleged unfairness.
Public Feud
The legal battle between these two crypto giants began after the collapse of the FTX crypto exchange. The dispute initially revolved around the recovery of funds but has since escalated into lawsuits.
Gemini's Previous Move
On Oct. 27, Gemini filed an adversary proceeding against bankrupt Genesis. The aim was to utilize 62,086,586 shares of Grayscale Bitcoin Trust (GBTC) as collateral for loans made by 232,000 Gemini users through the Gemini Earn Program. The current market value of the collateral is estimated to be $1.6 billion.
This is a developing story, and more information will be provided as it becomes available.
