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Gemini filed a complaint on Friday alleging that the bankrupt crypto lender owes Gemini roughly $1.6 billion, or around 62 million shares of Grayscale Bitcoin Trust (GBTC).<\/p>\n
Gemini claims that the two companies had a security agreement delineating that the 62 million shares be used as collateral.<\/p>\n
The company claims<\/a> its \u201cefforts have been undermined by Genesis\u2019s actions prior to and following the commencement of its bankruptcy proceeding.\u201d<\/p>\n \u201cGenesis has repeatedly taken actions to harm Earn Users and to hinder and delay Earn Users\u2019 recovery of their digital assets,\u201d Gemini claimed.<\/p>\n But, if the collateral was delivered, then the \u201camount that would completely secure and satisfy the claims of every single Earn User,\u201d Gemini alleges.<\/p>\n DCG declined to comment.<\/p>\n Back in September, Digital Currency Group \u2014 the parent company of Genesis \u2014 submitted a filing claiming that it worked out a plan<\/a> that would see an expected recovery rate of 95% to 100% for Earn users. Gemini, however, pushed back against the plan and the claim and accused DCG of \u201cgaslighting\u201d creditors<\/a>.<\/p>\n DCG, Gemini and Genesis are all twisted together through various legal actions at the moment \u2014 from the Gemini suit against DCG to the New York Attorney General\u2019s suit against all three<\/a> companies and DCG CEO Barry Silbert<\/a>.<\/p>\n If the court sides with Gemini, then the company claims the \u201cadditional Collateral would facilitate the return of more than $1 billion in digital assets that Genesis has wrongfully withheld from Earn Users for nearly a year.\u201d<\/p>\n The two had reportedly attempted to resolve the issues out of court, but were unable to.\u00a0<\/p>\n Genesis filed for bankruptcy earlier this year<\/a>, after pausing customer withdrawals last November.<\/p>\n DCG and Genesis worked out a tentative chapter 11 deal<\/a> back in August. In a shareholder letter earlier this month<\/a>, DCG said it sees around 70% to 90% recovery for creditors in the Genesis bankruptcy.<\/p>\n Don\u2019t miss the next big story \u2013 join our\u00a0free daily newsletter<\/a>.<\/strong><\/p>\n
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