Gemini has been battling Genesis and its parent company Digital Currency Group for months over agreements the companies have as part of the Gemini Revenue Program.
Gemini Trust Co crypto exchange filed a complaint against now-bankrupt crypto lender Genesis Global Holdco LLC over which company should own nearly $1.6 billion worth of Grayscale Bitcoin Trust shares.
Gemini's lawyers asked a New York bankruptcy court on Friday to rule that they should have access to more than 62 million GBTC shares. Gemini told the court that Genesis promised to hand over the shares to secure loans made by Gemini users as part of the Gemini Income Program.
“Currently, the Guarantee is worth nearly $1.6 billion, an amount that would fully secure and satisfy the claims of every Earn User,” Gemini said in its complaint. SENDOKKeep up with the latest news, trends, charts and views on crypto and DeFi with our bi-weekly newsletter new from The Block's Frank Chaparro Also get The Daily and our weekly Data & Insights newsletters - both FREEBy signing up, you agree to our Terms of Service and Privacy Policy
Gemini has been battling Genesis and its parent company Digital Currency Group for months over agreements the companies have as part of the Gemini Revenue Program. The program allowed users to lend digital assets to Genesis Global as part of a three-party contract and was discontinued earlier this year.
“Amid widespread market volatility in the summer of 2022, Gemini worked tirelessly to evaluate Genesis' financial condition to manage risks related to the Gemini Earn Program,” Gemini said in its complaint.
Gemini also accused Genesis of taking repeated actions to harm Earn Users and delay the recovery of users' digital assets, according to the complaint.
Ongoing story
Genesis' lending unit filed for bankruptcy protection at the start of the year. Since then, Gemini co-founders Tyler and Cameron Winklevoss have accused Genesis and DCG CEO Barry Silbert of misleading investors.
Both companies also received ire from regulators. The Securities and Exchange Commission charged Gemini and Genesis with offering unregistered securities over the Gemini Earn program in January . Last week, New York Attorney General Letitia James filed a complaint against all three: Genesis, Gemini and DCG.
