Gemini Sues Genesis Over $1.6B in GBTC Shares Used as Collateral in Earn Program Amid Genesis Bankruptcy

Gemini sued Genesis over $1.6B worth of GBTC shares used as collateral for loans in Gemini's Earn program.

Genesis wants to value the shares at their initial price, not the current higher price, to reduce payouts.

Genesis is allegedly not releasing additional collateral transferred by its parent DCG for Gemini Earn users.

Gemini says Genesis is trying to divert collateral worth over $1B from Earn users to other creditors.

Genesis filed for bankruptcy in January after suspending withdrawals, impacting Gemini Earn.