Recently, in a legal move, the DCG or Digital Currency Group’s subsidiary Genesis Global Capital LLC has made a complaint against the custodian and crypto exchange platform Gemini. Genesis Global Capital LLC is hoping to claw back around 689 million dollars from the entirely centralized cryptocurrency trading platform launched by Tyler and Cameron Winklevoss sometime in 2014.
Genesis Targets Gemini in $689M Legal Battle Over Alleged Preferential Crypto Withdrawals:
Genesis Global Capital LLC filed the complaint on 21st November, 2023, accusing Gemini of withdrawing more than 689 million dollars in the months that led to the bankruptcy proceedings of Genesis’ Chapter 11.
As per Genesis, this action benefited Gemini unfairly at the cost of other creditors.
The complaints come in the wake of an incredible cryptocurrency market instability that first started sometime in 2022, accompanied by target transactions taking place in the first 90 days before the bankruptcy declaration of Genesis.
As per the document, Gemini’s withdrawal ended up totaling approximately 689.30 million dollars, a particular more that Genesis describes as detrimental and preferential to the wider creditor base.
The situation first rose during a time period significantly marked by notable uncertainty and fluctuations within the crypto sector, complicating the whole financial dynamics at play here. The legal strategy of Genesis aims to actually invoke the different provisions of the whole Bankruptcy Code to rectify what happens to perceive as a situation that is inequitable. By simply doing this, they also intend to basically recover all the withdrawn funds in a single clawback, thereby restoring a logical playing field amongst all the Genesis creditors. The attorneys are insisting that the focus shouldn’t really be on the financial aspects but also on the just principles of equitable treatment and fairness in any bankruptcy proceedings.