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🟢

#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.

Crypto lender Genesis Global Capital holds $226 million in claims as FTX’s largest unsecured creditor.

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FTX and Genesis, both bankrupt crypto firms, have reached an agreement in principle to resolve the claims made by both parties in their ongoing dispute.

Legal representatives of both firms filed a letter to Judge Sean H. Lane, stating that the parties have reached an agreement in principle, pending documentation, to settle the claims asserted by the FTX Debtors against the Debtors in the Chapter 11 Cases and the claims asserted by the Genesis Debtors against the FTX Debtors in the FTX Chapter 11 Cases.

Genesis Global Capital emerged as FTX’s largest unsecured creditor with $226.3 million owed, according to a January court filing listing major creditors.

FTX claimed that Genesis owed nearly $4 billion, later reduced to $2 billion, but Genesis denied this allegation.

In response to FTX’s collapse in November, Genesis Global Capital, the lending division of Genesis, temporarily halted redemptions and new loans due to extreme market dislocation and a loss of industry confidence.

In January, Genesis filed for bankruptcy protection, already weakened by losses amounting to several hundred million from the collapse of Three Arrows Capital.

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 #FTX #GENESIS

#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