Gemini Pulled $282M from Genesis Prior to Its Bankruptcy Filing

Months before the bankruptcy declaration by Genesis Global Holdco LLC, Gemini Trust Co., a well-known cryptocurrency exchange, is said to have extracted a hefty sum of $282 million.

The two entities, Genesis and Gemini, had previously collaborated on the “Earn” initiative. Within this framework, Gemini users had the option to loan their cryptocurrency via Genesis, in return for interest.

Though this venture seemed mutually advantageous, the dynamics shifted when Gemini decided to pull out millions from Genesis.

Inside sources indicate that Gemini’s motive behind the massive withdrawal was to set up a financial safety net, ensuring immediate fund accessibility for its Earn clientele.

It’s crucial to note that contrary to some rumors, the Winklevoss twins did not receive any of these funds for personal use.

Genesis’s operations took a hit following FTX’s downfall, leading them to halt customer withdrawals and subsequently opting for Chapter 11 bankruptcy.

Reacting to the situation, Gemini approached the bankruptcy court, pushing for a hefty $1.1 billion compensation for its Earn program participants.

So far, attempts to reach a settlement involving the three stakeholders – Genesis, Gemini, and the Digital Currency Group (DCG) – have been futile. Notably, a public feud has unraveled between DCG’s founder, Barry Silbert, and the Winklevoss siblings.

While there seemed to be a semblance of resolution in February with a tentative agreement on the table, it unfortunately didn’t see the light of day, causing further delays in reconciliation efforts.

By July, the scenario intensified as Gemini slapped DCG with a fraud lawsuit.