Bankrupt broker Genesis demands $689 million from the Gemini exchange

Earlier, the exchange demanded $1,6 billion from the broker

22.11.2023 - 13:52

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What’s new? The bankrupt crypto broker Genesis filed a counter lawsuit against crypto exchange Gemini demanding the return of $689 million. Previously, the firms jointly operated Earn, a lending program in which exchange clients provided crypto assets to the broker at interest, but they lost more than $1 billion after the latter’s bankruptcy. In October, Gemini demanded $1,6 billion from Genesis through the court.

Lawsuit on the website of the law firm Kroll

What else is known? According to the lawsuit, in the three months that preceded the filing of the bankruptcy of Genesis in January of this year, Gemini withdrew from the broker’s platform at least $689 302 000, taking advantage of its VIP client status.

This put the exchange in a better position compared to other lenders who were unable to withdraw their funds. The lawsuit seeks to put the exchange back on an equal footing with the broker’s other creditors.

Genesis is part of Barry Silbert’s Digital Currency Group (DCG) conglomerate, which also includes investment firm Grayscale. In October, Gemini representatives sued the broker for $1,6 billion worth of Grayscale bitcoin trust units to settle with their clients under the Earn program.

Earlier, Gemini executives Cameron and Tyler Winklevoss also accused Silbert of fraud in connection with a late payment to customers of their exchange.

Moreover, Genesis itself sued parent conglomerate DCG in September, demanding repayment of $600 million in loans.

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