{"id":1971,"date":"2023-11-23T07:59:17","date_gmt":"2023-11-23T07:59:17","guid":{"rendered":"https:\/\/ethereumcode.io\/gemini-genesis-accusations-millions-transfer-crypto-chaos\/"},"modified":"2023-11-23T07:59:17","modified_gmt":"2023-11-23T07:59:17","slug":"gemini-genesis-accusations-millions-transfer-crypto-chaos","status":"publish","type":"post","link":"https:\/\/ethereumcode.io\/gemini-genesis-accusations-millions-transfer-crypto-chaos\/","title":{"rendered":"Gemini Faces Accusations from Genesis over Transferring Millions Amid Crypto Chaos"},"content":{"rendered":"
The cryptocurrency domain has observed some turbulence recently, with the digital assets management firm, Genesis Global Capital LLC, seeking a hefty recovery from the digital currency exchange, Gemini. Hoped to be reclaimed is an astounding $689 million that Genesis alleges Gemini withdrew ahead of the former’s Chapter 11 bankruptcy filing. This withdrawal, Genesis claims, conferred an unjust benefit to Gemini while leaving other creditors at a loss.<\/p>\n
This assertion was brought before the court via a complaint lodged by Genesis on 21st November 2023. Placed under scrutiny are transactions that transpired during the 90 days before Genesis declared bankruptcy. As per the complaint, the sum that Gemini purportedly withdrew amounts to $689.30 million. Genesis terms these transactions as preferential, citing them as damaging to the broader base of creditors.<\/p>\n
Notably, the complaint was filed against the backdrop of substantial volatility in the crypto market that started in 2022. This prodigious fluctuation and the resulting uncertainty in the crypto sector only added complexity to the financial complications holding sway. Through its legal framework, Genesis endeavors to wield the clauses of the Bankruptcy Code in a bid to set right what it perceives as a skewed situation.<\/p>\n
In an attempt to level the field for all of Genesis\u2019 creditors, the company strategizes to recoup the funds that have been withdrawn – what\u2019s referred to as a clawback. The aim, Genesis’ counsel emphasizes, is not solely financial relief. Equally important are the principles of evenhandedness and equitable treatment in bankruptcy procedures.<\/p>\n
Detailed in the complaint are the commendable withdrawals by Gemini, tagged as preferential transfers. According to Genesis, these actions gave Gemini a supposed upper hand over other creditors. Genesis’ effort is to obliterate this benefit.<\/p>\n