DCG accused of gaslighting Genesis creditors by Gemini Advocates

Advocates representing Gemini Trust have opposed the proposed plan by Digital Currency Group (DCG) for Genesis Global's creditors. Filed on September 15 in the US Bankruptcy Court for the Southern District of New York, the legal team accused DCG of misleading Genesis creditors through misleading recovery planning and false claims. The plan filed in the bankruptcy court on September 13 claimed that unsecured lenders could recover 70–90% of their funds in digital currency, while #Gemini  Earn users might recover around 95–110%. Gemini's legal team also alleged that DCG was attempting to induce Gemini lenders to accept a deal that would allow the company to pay less. They urged Genesis to improve the terms provided in the loans and advised against using Genesis' bankruptcy processing in the recovery plans.

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#Gemini has been a significant player in the crypto world, and recent news of its lawsuit has made headlines. So, what exactly is this lawsuit about, and what does it signify? Here's what you need to know about Gemini's lawsuit against Genesis:Origins of the Lawsuit-Gemini Earn: This is a product offered by Gemini that allows users to earn interest by depositing their cryptocurrencies. As part of this program, Gemini provided GBTC shares as collateral to Genesis Global.- Genesis's Role: Genesis utilized the funds gathered through the Earn program to lend to large institutions. However, a significant portion of these loans was categorized as high-risk and centered around firms like Alameda Research, a trading sister company of #ftx .Core of the Lawsuit- 60 Million GBTC Shares: As part of the collaboration with Gemini, Genesis provided shares of the Grayscale Bitcoin Trust (GBTC) as a guarantee to attract users to the Earn program. The total value of these shares is approximately $1.6 billion.- Control Claim: Gemini wants full control over these shares. According to the company, the GBTC shares are no longer under Genesis's control. This raises concerns that these shares could be used by Genesis to make repayments to its creditors in the event of bankruptcy.Why It Matters?This lawsuit highlights the complexity and risks involved in collaborations and agreements between major players in the crypto sector. It also serves as a reminder for crypto investors and users to be vigilant about how their investments are managed.#gbtc

The regulatory landscape for cryptocurrencies is undergoing a potential transformation as global regulators show increasing acceptance towards the crypto industry. France's regulatory body, the AMF, is taking a supportive stance on decentralized finance #DeFi and is advocating for global regulation to safeguard investors and foster innovation.

Recognizing the dynamic nature of the DeFi sector, the AMF emphasizes the importance of striking a balance between regulation and innovation. While acknowledging the benefits brought by technological advancements, they also stress the need for investor protection and risk management.

In contrast to the tightening regulations in the United States, some overseas jurisdictions are embracing the opportunities presented by cryptocurrencies. Hong Kong, as a special administrative region of China, is actively creating an environment conducive to #crypto development, attracting businesses to establish their presence in the region.

The Asia-Pacific region, including countries like Japan, holds significant potential for crypto growth. #Gemini , a leading cryptocurrency exchange, is capitalizing on this market's expansion by expanding its operations and establishing a stronger foothold in the region.

To ensure they don't fall behind in #Web3 development, Hong Kong has implemented legislation aimed at attracting new players and supporting existing digital asset firms. By capitalizing on the increased activity in Asia and the Gulf region, Hong Kong aims to remain at the forefront of cryptocurrency innovation.

In response to BlackRock's filing for a spot Bitcoin exchange-traded fund #ETF numerous investment managers, including WisdomTree and Invesco, have followed suit and submitted their own applications for spot Bitcoin ETFs. WisdomTree, based in New York, has made its third attempt to secure approval for a spot Bitcoin ETF, having previously faced rejections from the #SEC .

Overall, these developments indicate a shifting regulatory landscape where global regulators are increasingly embracing cryptocurrencies, recognizing the importance of investor protection, and striving to foster innovation in the industry.

Winklevoss Threatens Legal Action Against DCG

In an open letter, #Gemini CEO Cameron Winklevoss accused #DigitalCurrency Group (DCG) and its CEO, Barry Silbert, of delaying the resolution for Genesis, impacting 232,000 Earn users. Winklevoss claimed #DCG engaged in "fraudulent behavior" and "abused" the mediation process. He gave Silbert an ultimatum: accept Gemini’s final $1.47 billion offer by July 6 or face a lawsuit on July 7.

Source - https://www.coingabbar.com/en/crypto-shorts-news/winklevoss-threatens-legal-action-against-dcg

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A few market experts mentioned that a small number of buy and sell orders, along with not many people trading XRP on Gemini, might be why its price changed so much.

On August 10, the Gemini cryptocurrency exchange reopened XRP trading after a pause. They now support the XRP Ledger and allow people to trade XRP/USD using their applications.

But, there’s a problem: the XRP price on Gemini looks much higher than what people are actually paying. Some users even said the price went up to $50 just a few hours after XRP was added back for trading.

As of writing this story, a technical problem continues to affect the XRP price on Gemini. It’s currently being traded at $0.160, but the real price of XRP is around $0.63.

Courtesy: Gemini

Certain users attempted to figure out why the price glitch happened. Some experts said it might be because not many people were buying and selling XRP on the exchange, making it hard to find a fair price. They also mentioned that since XRP was recently added for trading, there might not be enough people interested yet. One person even saw someone accidentally put up a sell order at $50, thinking it could have been a mistake.

Gemini Exchange undergoing maintenance

Gemini hasn’t explained the situation yet, but they mentioned on their website that the exchange is undergoing maintenance since August 11 at 1:25 am UTC.

During this time, all services are unavailable, but customer assets are secure. The XRP price remains around $0.63 with a market cap of $33.5 billion.

After the excitement following the XRP lawsuit outcome, the price hasn’t seen much change and needs a new reason to go up. XRP investors are hoping for $1, but it’s hard while Bitcoin is stable.

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.

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