{"id":6398,"date":"2023-10-28T14:05:06","date_gmt":"2023-10-28T14:05:06","guid":{"rendered":"https:\/\/infundpros.com\/markets\/crypto\/gemini-seeks-control-of-1-6-billion-grayscale-shares-in-lawsuit\/"},"modified":"2023-10-28T14:05:06","modified_gmt":"2023-10-28T14:05:06","slug":"gemini-seeks-control-of-1-6-billion-grayscale-shares-in-lawsuit","status":"publish","type":"post","link":"https:\/\/infundpros.com\/?p=6398","title":{"rendered":"Gemini Seeks Control of $1.6 Billion Grayscale Shares in Lawsuit"},"content":{"rendered":"<div>\n<figure id=\"attachment_122288\" aria-describedby=\"caption-attachment-122288\" style=\"width: 1000px\" class=\"wp-caption aligncenter\"><noscript><\/noscript><figcaption id=\"caption-attachment-122288\" class=\"wp-caption-text\">Image Source: Shutterstock<\/figcaption><\/figure>\n<p>Crypto exchange <strong>Gemini<\/strong> has initiated a lawsuit against digital asset lender <strong>Genesis<\/strong> in an attempt to gain control over $1.6 billion worth of <strong>Grayscale Bitcoin Trust<\/strong> shares.<\/p>\n<p>The lawsuit, <span data-preserver-spaces=\"true\">filed on Friday<\/span> in the U.S. Bankruptcy Court Southern District of New York, aims to recover the shares to repay clients of Gemini\u2019s Earn program.<\/p>\n<p>Gemini and Genesis have been embroiled in a dispute since last year when Genesis served as a primary lending partner for Gemini\u2019s Earn product.<\/p>\n<p>The Earn program allowed customers to earn returns on their cryptocurrency holdings. However, following the collapse of major crypto exchange FTX and the subsequent industry-wide turmoil, Genesis halted withdrawals, leaving Earn customers uncertain about the fate of their funds.<\/p>\n<p>Gemini aims to retrieve the funds and fulfill its obligations to its clients.<\/p>\n<p>The lawsuit highlights that the collateral, which now amounts to nearly $1.6 billion, would fully secure and satisfy the claims of all Earn users.<\/p>\n<p>The main hurdle in this process, according to Gemini, is Genesis.<\/p>\n<p>In a blog post addressing the lawsuit, Gemini stated that Genesis is obstructing the effort to compensate Earn users and attempting to divert the value to other creditor groups.<\/p>\n<p>Genesis is a company under the umbrella of Digital Currency Group (DCG), which also controls the Grayscale Bitcoin Trust, the world\u2019s largest Bitcoin fund.<\/p>\n<p>\u201cGenesis has repeatedly taken actions to harm Earn users and to hinder and delay Earn users\u2019 recovery of their digital assets,\u201d the lawsuit alleged.\n<\/p>\n<blockquote>\n<p>\u201cIt is time to resolve these issues so that Genesis may move forward with a reasonable plan of reorganization and Gemini may distribute the proceeds of the collateral to Earn users.\u201d<\/p>\n<\/blockquote>\n<p>\nGenesis Global, a subsidiary of DCG, filed for bankruptcy in January and recently announced the cessation of all operations.<\/p>\n<p>Last month, the New York Attorney General\u2019s office sued DCG, Genesis Global Capital, and Gemini Trust, alleging that the companies defrauded customers of $1.1 billion.<\/p>\n<p>Gemini Trust, founded by Cameron and Tyler Winklevoss, prominent figures in the crypto space, has accused DCG CEO Barry Silbert of employing \u201cbad faith stall tactics\u201d to delay a resolution in the ongoing dispute.<\/p>\n<p>\u00a0<\/p>\n<div class=\"newsletter home-newsletter single\">\n<div class=\"left-side\">\n<p>\n        <em><br \/>\n            Enter your email for our Free Daily Newsletter        <\/em>\n    <\/p>\n<p> A quick 3min read about today&#8217;s crypto news!<\/p>\n<p>    <span class=\"response-msg\" id=\"newsletter-response\"><\/span>\n<\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>Read the full article <a href=\"https:\/\/cryptonews.com\/news\/gemini-seeks-control-of-1-6-billion-grayscale-shares-in-lawsuit.htm\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Image Source: Shutterstock Crypto exchange Gemini has initiated a lawsuit against digital asset lender Genesis in an attempt to gain control over&#8230;<\/p>\n","protected":false},"author":1,"featured_media":6399,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[28],"tags":[],"class_list":{"0":"post-6398","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-crypto"},"yoast_head":"<!-- This site is optimized with the 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