Gemini is alleged to have withdrawn hundreds of hundreds of thousands of bucks in cryptocurrency from Genesis just months in advance of the lending platform froze withdrawals and then went bankrupt.
Gemini “promptly withdrew” $282 million in advance of Genesis went bankrupt
Source from Bloomberg claimed that in August 2022, the Winklevoss twins’ Gemini cryptocurrency exchange promptly withdrew $282 million from Genesis, Digital Currency Group’s (DCG) cryptocurrency lending company, just three months in advance of it was barred to withdraw money and declare bankruptcy due to the collapse of FTX.
Cryptocurrency Exchange Gemini Drains Hundreds of Millions of Dollars from Genesis Global Several Months Before the Lender Freezes Deposits and Eventually Files Bankruptcy https://t.co/X24JJucWtF
— Bloomberg (@organization) September 28, 2023
According to a disclosed stability sheet, this volume is calculated primarily based on the worth of the asset as of August eight, 2022 (three months in advance of Genesis froze withdrawals). Types of retired assets include things like:
- three,120 Bitcoin (BTC)
- 18,060 Ethereum (ETH)
- Over 142 million Gemini stablecoins (GUSD)
- Finally, there have been 49.six million Dogecoin (DOGE) – the puppy-themed memecoin favored by Tesla boss Elon Musk – at the time DOGE was priced at $.06, and many other digital currencies.
This volume is at first made use of to produce a reserve fund to assure that prospects applying the Gemini Earn services can right away exchange their assets. Notably, no money have been transferred to the wallet addresses owned by the twin brothers Tyler or Cameron Winklevoss.
As reported by Coinlive, Genesis was 1 of the organizations heavily impacted by the surprising collapse of FTX in November 2022, the platform had to cease withdrawals a number of days later on. Not holding out for lengthy, Genesis officially filed for bankruptcy in January 2023, owed $three.five billion to 50 important creditors.
In February 2023, Genesis, DCG, Gemini and other creditor businesses reached an original bankruptcy settlement to recover assets. However, this deal failed.
Then, in July 2023, Gemini sued Genesis, DCG and founder Barry Silbert, accusing them of “defrauding creditors” and misappropriating roughly $one.two billion in assets locked up on Genesis.
In the most current developments, DCG has announced a new strategy for Gemini Earn end users, which will allow them to recover assets with an estimated worth of up to 70-90%.
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