Cryptocurrency exchange Gemini , Co-Owned by Tyler & Cameron Winklevoss With a determined approach, Gemini seeks to reclaim 60 million shares of Grayscale Bitcoin Trust, valued at around $1.6 billion, initially pledged for the Gemini Earn initiative.
Keypoints
- By securing these GBTC assets, Gemini aims to settle accounts with Gemini Earn clients, whose funds remain inaccessible since Genesis froze operations last year.
- Under the Digital Currency Group umbrella, Genesis, Gemini, and CoinDesk are interconnected.
- The lawsuit accuses Genesis of deliberately harming Earn participants and obstructing the recovery process of their assets.
- This legal clash emerges hot on the heels of the New York Attorney General's lawsuit against Gemini, Genesis, and DCG, alleging deception of more than 230,000 investors to the tune of over $1 billion.
- Gemini defends itself against SEC criticisms, arguing that Earn never functioned as an illicit security.
- Both Gemini and Genesis The lawsuit is intended to stop Genesis from allocating the 60 million GBTC shares to other creditors, asserting they belong solely to the Earn clientele following Genesis's withdrawal freeze last year.
The lawsuit, filed in bankruptcy court Successfully retrieving the shares would empower Gemini to reimburse the approximately 230,000 Earn clients who have been unable to access their funds since November 2022. The shares' value remains at about $1.6 billion.
These entities operate as part of the expansive Digital Currency Group (DCG) network. Gemini claims Genesis is purposely impeding Earn clients from reclaiming their investments.
Gemini, Genesis, and crypto news site CoinDesk This lawsuit aligns closely with the New York Attorney General's previous action against Gemini, Genesis, and DCG, accusing them of cheating investors out of an excess of $1 billion.
Both Gemini and Genesis refute the SEC's claim that their Earn program was an unauthorized security. Despite this, the collapses of Three Arrows Capital and FTX pushed Genesis to pause Earn withdrawals, inciting legal challenges from users wanting their money back.
This legal maneuver seeks to affirm Gemini's exclusive claim to the GBTC collateral, allowing them to sell the shares and compensate the Earn clientele. Genesis has yet to issue a public response. This litigation's outcome will be crucial in determining Earn users' financial recovery.
Heading Blockonomi as chief editor and founder of Kooc Media, an online media firm based in the UK, he champions open-source principles, blockchain innovation, and a free internet for everyone.
