In a dramatic turn of events, bankrupt crypto lender Genesis has initiated a new legal battle against its long-standing rival, Gemini. The lawsuit claims that Gemini received “unfair preferential transfers” of approximately $700 million shortly before the company declared bankruptcy.
The complaint, filed on November 21, asserts that these transfers significantly disadvantaged Genesis’s other creditors and seeks their recovery.
New Revelations In Genesis Lawsuit
According to the filed document, the crypto lender alleges that, during the 90 days preceding its Chapter 11 bankruptcy proceedings, Gemini withdrew an aggregate gross amount of no less than $689,302,000 from Genesis.
This action allegedly “purportedly benefited” Gemini at the expense of other creditors and continues to provide an advantage by retaining the disputed property.
The complaint requests to utilize the remedies under the Bankruptcy Code to rectify the perceived unfairness and restore parity among Genesis’s creditors.
The lawsuit is brought under Sections 547, 550, and 502 of Title 11 of the United States Code, with Genesis seeking a judgment that avoids the preferential transfers, directs Gemini to relinquish the transferred property or compensate the company for its value, and disallows any claims by Gemini.
Genesis has con
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Author: Ronaldo Marquez
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