Genesis Accuses Gemini Of Foul Play
Genesis Global Capital has filed a legal action against Gemini, claiming over $689 million in alleged preferential transfers. The dispute stems from the collapse of FTX in November, which led to legal battles and regulatory scrutiny.
Genesis alleges that Gemini exacerbated market volatility by making substantial withdrawal demands, causing harm to other creditors.
The lawsuit targets transactions in the 90 days leading up to Genesis’ bankruptcy filing in January. Genesis alleges that Gemini was aware of its precarious financial position when it insisted on repayment.
The legal dispute traces back to the bankruptcy of crypto hedge fund Three Arrows Capital, which caused a loss of customer trust and liquidity issues for Genesis and other cryptocurrency lenders.
The lawsuit reveals over $765.8 million in net transfers from Genesis to Gemini in September and October 2022, raising questions about preferential treatment that Genesis claims should undergo legal scrutiny.
Gemini denies any impropriety in its actions leading up to the partner’s bankruptcy and seeks compensation for losses incurred during the tumultuous period.
(With inputs from Shikha Singh)
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