Genesis Sues Gemini to Recover 'Preferential Transfers' Worth $689M
Genesis Global Capital has filed a lawsuit against cryptocurrency exchange Gemini Trust to reclaim over $689 million. The suit accuses Gemini of preferring its own transactions over other creditors. The two companies have been involved in a legal battle ever since the downfall of platform FTX. Earlier this year, Gemini sued Genesis's parent company, Digital Currency Group (DCG), then Genesis sued DCG for non-payment of loans. Furthermore, both companies were named in a $1 billion fraud lawsuit brought forth by the New York Attorney General on behalf of over 230,000 investors. Genesis claims Gemini's sharp withdrawals escalated its bankruptcy amidst the collapse of Terraform Labs and Three Arrows Capital. Gemini rejects Genesis's allegations as baseless.
