A substantial legal dispute has arisen between Genesis Global Capital and Gemini Trust. Genesis, a cryptocurrency lender, has initiated legal proceedings against its former partner, Gemini, aiming to recover a sum exceeding $689 million. The filed court documents, submitted, asserted that Gemini conducted preferential transfers totaling around $689,302,000, disadvantaging other creditors. This has ignited a contentious legal clash that sheds light on the intricacies and obstacles within the cryptocurrency sector.Origins of the ConflictThe Genesis-Gemini conflict can be traced back to the collapse of FTX. This was a pivotal event that set the stage for a series of legal and public confrontations. Faced with financial instability, Genesis filed for bankruptcy in January. Subsequently, its parent company, Digital Currency Group (DCG), encountered legal action from Gemini in July. This was with Gemini dismissing the claims as “defamatory” and a “publicity stunt.” The legal saga persisted as Genesis counter-sued DCG in September, seeking repayment for loans surpassing $600 million. In October, the firm took legal action against Genesis concerning 60 million shares of the Grayscale Bitcoin Trust (GBTC). This was valued at approximately $1.6 billion.Principal Allegations and Legal ActionsIn the ongoing clash, Genesis alleges that Gemini engaged in preferential transfers amid market turmoil triggered by the collapse of LUNA and TerraUSD. This was further coupled with challenges faced by the digital asset hedge fund Three Arrows Capital. As per the court filing, Gemini executed “unprecedented withdrawals” before Genesis filed for bankruptcy, contributing to what Genesis describes as a “run on the bank.”During the ninety-day preference period, Gemini allegedly insisted on the repayment of previous loans extended to Genesis. These were transfers that the filing deems “avoidable.” Genesis asserts that these actions occurred with the knowledge that the company was insolvent. The lawsuit seeks to rectify what Genesis perceives as unfair treatment. It further aims to address the preferential benefits granted to Gemini at the expense of other creditors.The Genesis-Gemini dispute has not escaped the attention of U.S. authorities. In January, just days before Genesis filed for bankruptcy, the U.S. Securities and Exchange Commission (SEC) accused both Genesis and Gemini of selling unregistered securities. Recently, in a heightened escalation of legal actions, New York Attorney General Letitia James filed a lawsuit against DCG, Genesis, and Gemini. The lawsuit alleges that the trio defrauded over 230,000 investors, including at least 29,000 New Yorkers, of more than $1 billion.#GENESIS #DYOR🟢

CryptosHeadlines.com - The Leading Crypto Research Network:

Digital Currency Group (DCG) announced that they have chosen Mark Shifke to be their new chief financial officer (CFO).

Digital Currency Group (DCG) is close to reaching a settlement with Genesis, its subsidiary’s creditors, as reported by Bloomberg on July 31.

In DCG’s second-quarter shareholder letter released on the same day, they mentioned making significant progress in negotiations to resolve the claims in the Genesis Capital Chapter 11 cases. The company is optimistic about bringing these cases to a close soon and will provide updates as the claim resolution process moves forward.

DCG Reports Revenue Growth but Records Loss in Q2:

Regarding financials, DCG reported $216 million in revenue for the second quarter, showing a 17% increase in sequential revenue growth. However, the company also incurred a consolidated quarterly loss of about $79 million. The loss was mainly due to a one-time counterparty default at Genesis, which cost $113 million.

As part of the developments, DCG appointed Mark Shifke as its new CFO. Shifke has a background in the fintech industry, having held executive roles in companies like Billtrust and Green Dot, as well as traditional financial firms like JP Morgan and Goldman Sachs. He is relatively new to the cryptocurrency industry.

Genesis Commences Bankruptcy in Early 2023:

Genesis Global Holdco’s lending arm, a subsidiary of DCG, filed for bankruptcy protection on January 19, 2023, stating a debt of $3.5 billion owed to its 50 largest creditors. The bankruptcy proceedings are still ongoing and have significantly impacted Gemini, a crypto exchange that collaborated with Genesis to offer an interest-bearing “Earn” product. Gemini is now one of Genesis’ largest creditors and expressed frustration with a deal expected to close in mid-July.

In early July, Gemini filed a lawsuit against DCG and its CEO, Barry Silbert, accusing them of “fraud and deception.” DCG has denied any wrongdoing.

On the other hand, Genesis reached an agreement with another creditor, the defunct crypto exchange FTX, as per court filings on July 27. The situation remains complex, with ongoing legal actions and negotiations.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

#NFT #Web3 #Blockchain #DCG #GENESIS

1. Genesis's GBTC Holdings Sale:
- Genesis, a U.S. cryptocurrency lending and trading company, plans to sell 35 million shares of GBTC (Grayscale Bitcoin Trust), valued at $1.3 billion.
- Historical data indicates that previous large-scale sales of GBTC holdings, such as FTX's $1 billion sale, triggered a significant BTC price drop from $49,000 to $39,000.
2. U.S. Government Disposal of Silk Road Confiscated BTC:
- The U.S. government recently announced its intention to dispose of 2,933 BTC (approximately $130 million) confiscated from the Silk Road dark web marketplace.
- Large-scale government Bitcoin sales could potentially impact the market, as seen in historical instances.
3. Downside Risks and Market Response:
- Cryptocurrency analysts, including SpotOnChain, warn of potential downside risks associated with the mentioned events.
- Traders and investors need to be vigilant as substantial sell-offs of cryptocurrency holdings by major entities can lead to increased market volatility.
4. Impact on BTC Price and Market Sentiment:
- Historical correlations suggest that significant sell-offs, whether by bankrupt exchanges or government agencies, can influence BTC prices.
- The market tends to react sensitively to such news, impacting investor sentiment and potentially leading to short-term price declines.
5. Government's Large BTC Holdings:
- The U.S. government reportedly holds approximately 208,000 BTC, making it a significant player in the cryptocurrency market.
- Notifications of intent to dispose of confiscated BTC add an additional layer of uncertainty, requiring market participants to stay informed and adaptive.
6. Market Reaction to Previous Sales:
- Examples from past instances, such as FTX's GBTC sale and other government-related disposals, demonstrate how cryptocurrency markets respond to large-scale sell-offs.
- Investors should consider these precedents to make informed decisions and manage potential risks associated with similar future events.
7. Key Takeaways for Investors:
- Stay informed about major cryptocurrency holdings and their potential liquidations.
- Monitor announcements from entities like Genesis and government agencies for insights into market dynamics.
- Implement risk management strategies to mitigate potential losses during periods of heightened market uncertainty.
8. Conclusion: Navigating Uncertainties in the Crypto Landscape:
- Cryptocurrency markets are susceptible to various factors, including large-scale sell-offs and government actions.
- Investors must approach the market with caution, understanding the potential impact of significant events on asset prices and overall market sentiment.
#GBTC #BTC #GENESIS #US #Write2Earn $BTC

#bitcoinhalving Xahau, the XRP Ledger's first protocol sidechain, has taken a huge governance leap. The governance game portal for the Xahau network has been launched by Bithomp.The XRP #Ledger explorer, Bithomp, has created a platform laying out Xahau's governance game landscape with all of its participants and activity.1/2 We are excited to announce that we've created the 𝐆𝐨𝐯𝐞𝐫𝐧𝐚𝐧𝐜𝐞 𝐆𝐚𝐦𝐞 𝐏𝐨𝐫𝐭𝐚𝐥 for #XAHAU. 🥳https://t.co/6j3pwSicb5- View all the members of the Main table and of each of the L2 tables.- View all the installed hooks on each of the tables. pic.twitter.com/DT4TGJWcEN— Xahau Explorer (@XahauExplorer) November 13, 2023#xrplab s, Titanium, Evernode, digital governance and Gatehub crypto represent individual validators (Level 1), while the Xahau projects table, Xahau dev table, Xahau auditors and enterprise and Xahau exchange table represent a group (Level 2).On Oct. 31, the Xahau network went live, marking an important milestone. Ahead of its launch, Xahau presented its revolutionary governance mechanism, dubbed the "Governance Game," which will control token distribution, reward active users and ensure network viability.The governance game ensures that each member or validator has a say in shaping developments in the Xahau ecosystem.With a total of 20 seats, each has its vote. Some seats represent individual validators (Level 1), while others represent a group of validators (Level 2).The Xahau Governance Game can be compared to a decision-making body that uses a voting mechanism, similar to a DAO (Decentralized Autonomous Organization) that makes decisions based on consensus among its members.The #GENESIS Hooks examines validator participation in consensus using the UNLReport while guaranteeing that only those achieving the consensus threshold are rewarded.GateHub announced shortly after Xahau's launch that it would begin supporting the Xahau network in its wallet and DEX on Nov. 15.#Web3Wallet

CryptosHeadlines.com - The Leading Crypto Research Network

Crypto broker Genesis has made a significant decision to stop its customers from withdrawing funds, which adds more uncertainty to the already turbulent world of digital currencies.

This move follows the court’s approval of a $175 million settlement between Genesis and the now-bankrupt cryptocurrency exchange FTX.
The news of Genesis halting customer withdrawals was first shared on X (formerly Twitter) by @WatcherGuru. The decision to halt withdrawals comes as Genesis had already revealed its intentions to discontinue its cryptocurrency trading operations in September. As part of this transition, Genesis has ceased its digital asset services following an agreement with Digital Currency Group (DCG) related to recovery payments and its ongoing bankruptcy proceedings.
In its September announcement, the company had explained that it was discontinuing its crypto trading services due to voluntary business considerations. The decision specifically affected digital asset spot and derivatives trading through GGC International, Ltd. (GGCI), resulting in the termination of trading services across all of its business entities.
The suspension of customer withdrawals is a significant development following Genesis’s bankruptcy filing earlier in the year, which was prompted by the Gemini Exchange’s refusal to assist in customer withdrawals. This issue escalated, ultimately leading to legal intervention and a settlement between Genesis and FTX, shedding light on the challenges faced by the company and the broader crypto industry.
Decision Comes Day After Settlement With FTX
Just a day after a court approved a $175 million settlement between FTX and Genesis, the decision to suspend withdrawals was made. In the United States Bankruptcy Court for the Southern District of New York, the settlement was given the green light. It allows Genesis debtors to abide by the settlement agreement and pay $175 million to FTX.
This resolution stems from various claims FTX made against Genesis, resulting in a substantial reduction from the initial $3.9 billion claim. While Genesis views the settlement as “fair and equitable,” some FTX creditors have expressed dissatisfaction, leading to contested resolutions.
These events occur amidst the ongoing trial of FTX founder Sam Bankman-Fried, who faces charges like fraud and money laundering. The situation underscores the challenges currently facing the crypto industry.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

#Blockchain #CryptoMarket #Bitcoin #CryptoNews #GENESIS

#Write2Earn Genesis Global settles legal dispute with New York AG Letitia James over allegations of selling unregistered securities via its Earn program.STORY HIGHLIGHTSThe filing shows #GENESIS will cease any future business operations in New York.Genesis creditors to adopt procedures valuing digital assets at current market price.Some stakeholders have voiced opposition to Genesis' proposed liquidation plan.On Thursday, February 8, #bankrupt cryptocurrency lender Genesis Global reached a settlement in the lawsuit filed by New York Attorney General Letitia James. The lawsuit alleged that Genesis had defrauded customers through its now-defunct Earn program.Under the Earn program, customers could earn interest payments by loaning their digital assets. However, according to the SEC, this activity constituted an unregistered securities offering.Genesis Global Settles With NYAGThe settlement agreement of Genesis with NYAG outlines terms whereby assets that could have been seized by state authorities will instead be returned to former Earn customers and other creditors associated with Genesis. This arrangement follows a separate $21 million settlement reached by Genesis to resolve a complaint filed by the U.S. Securities and Exchange Commission (SEC) regarding its Earn program.Last October, Attorney General James filed a lawsuit against Genesis, its parent company Digital Currency Group, and Gemini, alleging fraud amounting to $1.1 billion against customers. However, the settlement disclosed in the New York bankruptcy court specifically addresses allegations against Genesis alone, as per court documents.While the companies have consistently denied any wrongdoing, Genesis has agreed to settle the claims without admitting liability. Furthermore, as part of the settlement, Genesis has committed to cease its operations in New York and intends to undergo liquidation proceedings. Recently, the bankrupt crypto lender also filed for asset sales while selling a large part of its #gbtc shareholdings.NYAG Offers Help to the Bankrupt Crypto LenderNew York authorities have made a significant offer to creditors as per the court documents. This is irrespective of whether the company settles its debts in cryptocurrency or cash.Genesis, currently navigating Chapter 11 bankruptcy, has proposed a plan to return Bitcoin and other digital tokens to clients affected by the freeze on their assets. However, the final decision regarding the mode of repayment lies with the judge, who may mandate repayment in cash instead.One notable aspect of the proceedings is the agreement among major Genesis creditors to adopt procedures that would value digital assets closer to their current market prices. This adjustment reflects the substantial increase in cryptocurrency prices since the crypto lender filed for Chapter 11 in January 2023. Unlike previous bankruptcies in the crypto sector, where assets were valued at their Chapter 11 filing date, this approach seeks to account for the significant appreciation in crypto asset values over time.However, not all stakeholders agree with Genesis’ proposed liquidation plan. Digital Currency Group, the parent company of Genesis, has voiced opposition to the plan, arguing that it could unfairly benefit certain creditors in the Chapter 11 process.Genesis will present its proposed liquidation plan to Judge Sean Lane of the New York bankruptcy court on February 14th, seeking approval for both the settlement agreement and the proposed plan.