In a remarkable turn of events, failed cryptocurrency lender Genesis has sparked a new legal battle against its long-time rival Gemini. The lawsuit alleges that Gemini received approximately $700 million in “unfair preferential transfers” shortly before the company filed for bankruptcy.
Genesis demands reimbursement of $689,302,000 in new disclosures
According to the filing, the cryptocurrency lender alleges that Gemini withdrew a gross amount of at least $689,302,000 from Genesis in the 90 days prior to the Chapter 11 bankruptcy filing. Genesis alleges that this filing materially benefited Gemini at the expense of other creditors and seeks redress for this alleged injustice.
Action clarifies alleged errors in transfers
The lawsuit clarifies possible irregularities surrounding Gemini’s alleged receipt of preferential transfers. Genesis understands that these transfers were made to pay off previous debts while the cryptocurrency lender was insolvent. The outcome of the lawsuit could have far-reaching consequences for both companies and the entire crypto industry.
Potential impact on the cryptocurrency industry
If the court rules in Genesis’ favor, challenging and repaying the transfers would help restore balance among creditors and eliminate Gemini’s alleged preferential treatment. The outcome of this lawsuit could have far-reaching implications for the future of both companies and the broader regulatory framework for preferential transfers in the crypto lending industry.
Source: BtcDirect
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Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
