The bankrupt crypto lender, Genesis Global, has sued crypto exchange Gemini to recover preferential transfers of $689 million.
A November 21 filing to the U.S. Bankruptcy Court reveals that Gemini withdrew an approximate amount of over $689 million at the expense of other creditors from Genesis.
The lawsuit alleged that Gemini’s withdrawals were during the 90-day period before Genesis filed for bankruptcy. Hence the amount falls under preferential transfers. Gemini has also attached all the transactions of assets into filing which accounts for a total of $689,301,010.
Preferential transfers are the payments made by bankrupt entities to their creditors in the 90 days before the bankruptcy, which must be paid back.
Genesis has requested the court to recover all transfers from Gemini while following the United States Bankruptcy Code to pursue fairness in putting Gemini with its other creditors.
The legal feud between both of these firms has been going on and on after the turmoil of Terra Luna collapse. Genesis filed for bankruptcy in January, and since many of its creditors, including, Gemini, are looking to recover their lending to the crypto exchange.
Recently in October, Gemini filed a lawsuit against Genesis over $1.6B GBTC shares which Genesis used as security against a loan from Gemini.
Also read: Apple Faces Lawsuit For Blocking P2P Crypto Payments
