Cryptocurrency lender Genesis Global Capital has filed a lawsuit against cryptocurrency exchange Gemini in an attempt to recover $689 million in privileged payments. According to court documents, Gemini allegedly benefited from these payments and is still holding onto the property that Genesis is trying to reclaim. Genesis is seeking remedies under the US Bankruptcy Code to address the injustice and put Gemini in the same position as other creditors. This legal action comes after a public dispute between the two companies over the recovery of funds, which escalated into lawsuits. Gemini had previously used shares of its Grayscale Bitcoin Trust as security for loans from 232,000 users through its Gemini Earn program. The collateral is currently valued at around $1.6 billion. Genesis filed for bankruptcy in January after stopping withdrawals in November 2022. In addition to the lawsuit against Gemini, Genesis has also sued Digital Currency Group (DCG) for the recovery of over $600 million in loans.

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Information	Details
Geography	Global
Countries
Sentiment	negative
Relevance Score	1
People	Barry Silbert
Companies	Gemini, Genesis Global Capital, FTX, Grayscale Bitcoin Trust, Digital Currency Group (DCG)
Currencies	None
Securities	None