Genesis Alleges Multi-Million Dollar Preferential Transfers by Gemini Amidst Crypto Turmoil
In a recent legal move, Digital Currency Group’s (DCG) subsidiary Genesis Global Capital LLC has filed a complaint against the crypto exchange platform and custodian Gemini. Genesis hopes to claw back $689 million from the centralized crypto trading platform founded by Cameron and Tyler Winklevoss in 2014.

Genesis Targets Gemini in $689M Legal Battle Over Alleged Preferential Crypto Withdrawals

The court filing, filed on November 21, 2023, accuses Gemini of withdrawing over $689 million in the months leading to Genesis’ Chapter 11 bankruptcy proceedings. This action, according to Genesis, unfairly benefited Gemini at the expense of other creditors.

The complaint, filed in the wake of significant crypto market instability that began in 2022, targets transactions occurring in the 90 days preceding Genesis’ bankruptcy declaration. According to the document, Gemini’s withdrawals totaled approximately $689.30 million, a move Genesis describes as preferential and detrimental to the broader creditor base.

This situation arose during a period marked by notable fluctuations and uncertainty within the cryptocurrency sector, further complicating the financial dynamics at play. Genesis’ legal strategy aims to invoke the provisions of the Bankruptcy Code to rectify what it perceives as an inequitable situation.