Gemini Just Filed A Complaint Against Genesis Over $1.6 Billion in GBTC Shares

It has been just revealed the fact that Gemini has filed a complaint against Genesis over $1.6 billion in GBTC shares. Check out the latest reports about this below.

Gemini Trust Co., a crypto exchange, has filed a complaint against Genesis Global Holdco LLC, a now-bankrupt crypto lender, over the ownership of shares of Grayscale Bitcoin Trust valued at almost $1.6 billion.

According to Gemini’s lawyers, Genesis had promised to deliver over 62 million GBTC shares to secure loans made by Gemini users under the Gemini Earn Program.

Gemini is now seeking a decision from a New York bankruptcy court to gain access to these shares.

“Today, the Collateral is worth nearly $1.6 billion, an amount that would completely secure and satisfy the claims of every single Earn User,” Gemini said in its complaint.

Gemini has been in a legal dispute with Genesis and its parent company, Digital Currency Group, for several months over an agreement that was a part of the Gemini Earn Program.

The program allowed users to lend digital assets to Genesis Global through a tri-party contract, but it was terminated earlier this year.

According to Gemini’s complaint, during the market turmoil in the summer of 2022, they worked tirelessly to assess Genesis’s financial condition to manage risk related to the Gemini Earn Program.

Gemini also alleged that Genesis took repeated actions to harm Earn Users and delay the recovery of users’ digital assets.

In the beginning of the year, the lending unit of Genesis filed for bankruptcy protection. Gemini’s co-founders Tyler and Cameron Winklevoss have accused Genesis and DCG CEO Barry Silbert of deceiving investors. Both firms have also faced regulatory scrutiny.

The Securities and Exchange Commission sued Genesis and Gemini for an unregistered securities offering related to the Gemini Earn program in January. Recently, New York Attorney General Letitia James filed a complaint against all three companies: Genesis, Gemini and DCG.