Bankrupt crypto platform Genesis sues crypto exchange Gemini to recover $689 mn

SAN FRANCISCO: Bankrupt crypto lending platform Genesis has sued cryptocurrency exchange Gemini to recover $689 million.

Genesis alleges that Gemini, owned by the Winklevoss twins, made "significant withdrawals" before Genesis filed for bankruptcy, contributing to a "run on the bank," reports CoinDesk.

The lawsuit alleged that Gemini made preferential transfers of an "aggregate gross amount of no less than approximately $689,302,000" from Genesis at the expense of other creditors and asked the court to "correct this unfairness."

Genesis and Gemini have been embroiled in a public and legal feud ever since the collapse of cryptocurrency exchange FTX run by former CEO Sam Bankman-Fried. Genesis filed for bankruptcy in January.

Its parent company, Digital Currency Group (DCG), was sued by Gemini in July over allegations that DCG then described as "defamatory" and a "publicity stunt."

In September, Genesis sued its parent company, DCG, seeking the repayment of multiple loans worth over $600 million.

In October, Gemini sued Genesis over 60 million shares of the Grayscale Bitcoin Trust (GBTC), valued at around $1.6 billion.

Ironically, Gemini, Genesis, and DCG must deal with the lawsuit New York's Attorney General has filed against all three of them.

The turmoil in the world of crypto continues.

On Wednesday, Binance Founder Changpeng Zhao (also known as CZ) announced that he will step down as the CEO of the world's largest cryptocurrency exchange, after pleading guilty to federal charges and agreeing to pay $4.3 billion in fines.

Binance Holdings Limited (Binance), the entity that operates the world’s largest cryptocurrency exchange, Binance.com, pleaded guilty and has agreed to pay over $4 billion to resolve the US Justice Department's investigation into violations.