Leading cryptocurrency exchange Gemini has filed a lawsuit against bankrupt crypto lender Genesis Global LLC.
According to Bloomberg, the lawsuit in question aims to determine who owns more than 60 million shares of Grayscale Bitcoin Trust (GBTC), which were pledged as collateral to Genesis Global, the former partner of the Gemini Earn product.
The lawsuit stated that the value of more than million GBTC shares reached $1.6 billion.
In its lawsuit, Gemini asked the court to find that Genesis has no rights to the more than 60 million GBTC shares pledged as collateral to users of Gemini's Earn product.
At this point, Gemini argues that the GBTC stock in question, most of which is still held by Genesis or its subsidiaries, should not be used to repay Genesis creditors other than itself.
Making a statement about the case, Gemini lawyers said that with this lawsuit, it plans to clarify the value of its claims against Genesis and eventually use GBTC shares to refund its users.
“Genesis has repeatedly taken actions to harm Earn users and prevent and delay Earn users from recovering their digital assets.
“However, it is time to resolve the existing issues on GBTC shares so that Genesis can move forward with a reasonable restructuring plan and distribute Gemini's security proceeds to Earn users.”
