Genesis Sues Gemini Seeking to Claw Back $689M from Customers Before Bankruptcy Filing
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Crypto lender Genesis Global sued partner Gemini Trust to recover over $689M that customers withdrew before Genesis' bankruptcy.
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Genesis claims under bankruptcy law it can claw back funds to make fairer distribution among creditors.
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Gemini said Genesis should fully repay customers, not claw back funds from users who made withdrawals.
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Regulators have sued Genesis, parent company Digital Currency Group, and Gemini over alleged fraud and failure to return customer assets.
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Genesis filed for bankruptcy in January after freezing customer redemptions, following the collapse of counterparties like FTX.