Bankrupt crypto lender Genesis Global Capital has filed a lawsuit against cryptocurrency exchange Gemini to recover $689 million in preferential transfers, according to a Nov. 21 court filing.
The lawsuit alleges that during the 90-day period before Genesis filed for bankruptcy in January, Gemini withdrew an “aggregate gross amount of no less than approximately $689,302,000” at the expense of other creditors and continues to benefit through retaining the property Genesis seeks to recover. Genesis’s council requested the court to use the remedies provided by the United States Bankruptcy Code to correct the “unfairness and return Defendants to the same position as Plaintiff’s other similarly-situated creditors.”
The two crypto giants have been embroiled in a public feud over the recovery of funds that escalated into lawsuits after the collapse of crypto exchange FTX in November 2022.
Apart from legal remedies, the CEOs of the two companies were also involved in public spats, accusing each other of noncooperation and threatening legal action.
Gemini filed an adversary proceeding against Genesis on Oct. 27 to use 62,086,586 shares of its Grayscale Bitcoin Trust. The shares were used as collateral to secure loans made by 232,000 Gemini users to…
