Gemini, a cryptocurrency exchange, has filed a lawsuit against Genesis Global Holdco, a bankrupt crypto lender, over the fate of shares of Grayscale Bitcoin Trust (GBTC). These shares were used as collateral for loans made by Gemini users to Genesis. The collateral is currently worth close to $1.6 billion. Gemini claims to have received $284.3 million from foreclosing on the collateral, but Genesis disputes this action. Genesis has proposed using the initial value of the collateral, which was over $800 million, to determine the deficiency claim of the users. Gemini argues that only the users should benefit from any gain resulting from the foreclosure. Gemini has filed an adversary proceeding seeking to recover $1.6 billion for the benefit of the users. Genesis filed for bankruptcy in January and had suspended withdrawals, impacting the Gemini Earn program. Gemini had previously sued Genesis and its parent company, Digital Currency Group (DCG), for fraud in connection with the Earn program. The case brought by the United States Securities and Exchange Commission and the New York Attorney General against Gemini, Genesis, and DCG is ongoing.

This News Article was automatically generated by Bob the Bot (AI)

Information	Details
Geography	North America
Countries	🇺🇸
Sentiment	negative
Relevance Score	1
People	Letitia James, Barry Silbert
Companies	Digital Currency Group (DCG), United States Securities and Exchange Commission (SEC), Genesis Global Holdco, Gemini, Grayscale Bitcoin Trust (GBTC)
Currencies	Bitcoin
Securities	None