Popular US cryptocurrency exchange Gemini filed a lawsuit against the bankrupt crypto lending platform Genesis for $1.6 billion.
There has been a new development in the conflict that has been going on for months between Gemini and Genesis. Gemini, which was given as collateral to Genesis last year $1.6 billion worth 60 million Grayscale Bitcoin Trust (GBTC) He filed a lawsuit for his shares.
New York bankruptcy court 20 October Gemini lawyers, who applied on the date, received from the court $1.6 billion GBTC demanded a clear decision on whether its products belonged to Gemini or Genesis.
The company will be the victim of these GBTCs in the event of a decree stating that the assets belong to them. 230,000 thousand Gemini Earn users He stated that they would spend it for
In this case filed as part of Genesis’ bankruptcy process, the Gemini front submitted a written petition to the court and made the following statements:
Genesis has repeatedly taken steps to do business at a loss to Earn users and to prevent Earn users from getting their crypto money back. It is time to resolve these issues so that Genesis can move forward with a reasonable restructuring plan and distribute Gemini’s security proceeds to Earn users.
Affected by the bankruptcies in the cryptocurrency market last year, the crypto loan platform Genesis, managed by DCG, completely stopped customer withdrawals, and this put Gemini in a difficult situation. In this regard, Gemini has 230 thousand Earn users. More than $1.2 billion the entity was stuck on the platform.
It was a noteworthy point that it came especially at a time when rumors about the approval of spot Bitcoin ETFs were increasing. In recent weeks, before the US Securities and Exchange Commission (SEC) a partial victory winning cryptocurrency focused investment company Grayscaleis positioned as one of the companies closest to spot Bitcoin ETF approval.