Gemini is seeking control of the $1.6 billion grayscale stock in a lawsuit | Taza Khabre

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Crypto exchange Twins has started a lawsuit against the digital asset lender genesis in an attempt to control over $1.6 billion Bitcoin Trust in grayscale shares

the suit, presented on Friday in the United States Bankruptcy Court for the Southern District of New York, aims to recover shares to pay customers of Gemini’s Earn program.

Gemini and Genesis have been involved in a dispute since last year, when Genesis served as the primary lending partner for Gemini’s Earn product.

The Earn program allowed customers to earn returns on their cryptocurrency holdings. However, following the collapse of major cryptocurrency exchange FTX and the resulting industry-wide turmoil, Genesis halted withdrawals, leaving Earn customers uncertain about the fate of their funds.

Gemini aims to recover the funds and meet its obligations to its customers.

The lawsuit states that the guarantee, which now stands at nearly $1.6 billion, would fully guarantee and satisfy the claims of all Earn users.

The main obstacle in this process, according to Gemini, is Genesis.

In a blog post about the lawsuit, Gemini stated that Genesis is obstructing the effort to compensate Earn users and is trying to divert value to other groups of creditors.

Genesis is a company under the umbrella of Digital Currency Group (DCG), which also controls the Grayscale Bitcoin Trust, the world’s largest Bitcoin fund.

“Genesis has repeatedly taken actions to harm Earn users and to hinder and delay Earn users’ recovery of their digital assets,” the lawsuit alleged.

“It is time to resolve these issues so that Genesis can move forward with a reasonable reorganization plan and Gemini can distribute the warranty proceeds to Earn users.”

Genesis Global, a subsidiary of DCG, filed for bankruptcy in January and recently announced the cessation of all operations.

Last month, the New York attorney general’s office sued DCG, Genesis Global Capital and Gemini Trust, alleging the companies defrauded clients out of $1.1 billion.

Gemini Trust, founded by Cameron and Tyler Winklevoss, prominent figures in the crypto space, has accused DCG CEO Barry Silbert of using “bad faith tactics” to delay resolution of the ongoing dispute.

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