Gemini sues Genesis over GBTC shares used as Earn collateral, now value $1.6B

Cryptocurrency trade Gemini filed an adversary continuing in opposition to bankrupt crypto lender Genesis International Holdco within the Southern District of New York Chapter Court docket on Oct. 27. At challenge is the destiny of 62,086,586 shares of Grayscale Belief (GBTC). They had been used as collateral to safe loans made by 232,000 Gemini customers to Genesis via the Gemini Earn Program. That collateral is at the moment value near $1.6 billion.

In line with the go well with, Gemini has acquired $284.3 million from foreclosing on the collateral for the advantage of Earn customers, however Genesis has disputed the motion, stopping Gemini from distributing the proceeds.

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