Gemini Withdrew $282 Million Before The Genesis Collapse
Cryptocurrency exchange Gemini managed to withdraw $282 million in five months before Genesis collapsed, according to two people close to the case. Gemini, which claims in lawsuits that DCG had advance knowledge of Genesis' problems, is raising suspicions.
Gemini and Genesis were linked by a common product, Earn, which became the subject of a dispute after Genesis' bankruptcy. According to unnamed sources, Gemini used the $282 million withdrawn to create a reserve so that Gemini Earn customers could make immediate repayments. It is also alleged that Gemini's co-founders, the Winklevoss brothers, did not personally receive the money.
The collapse of FTX caused the bankruptcy of many companies in the industry. Immediately after the incident, Genesis froze customer withdrawals and filed for bankruptcy in January. Gemini turned out to be one of the major Genesis customers that was affected by the lender's actions. Gemini's co-founders sued Genesis and its parent company DCG on behalf of Earn customers. In addition to Gemini accusing DCG management of hiding Genesis's problems, the exchange expressed dissatisfaction with DCG's proposed settlement scheme. The case became more complicated when Genesis sued DCG in September for $620 million in unpaid loans.
Gemini recently said that Genesis has made no progress in paying creditors.
Barry Silbert Cameron Winklevoss Tyler Winklevoss
