Gemini Withdraws “Hundreds of Millions of Dollars” from Genesis
Gemini, a cryptocurrency exchange, reportedly withdrew a significant amount of money from Genesis, a bankrupt crypto lender, several months before its insolvency. According to anonymous sources, Gemini extracted $282 million worth of crypto from Genesis in August 2022. This withdrawal allegedly took place just five months before Genesis’ lending arm filed for bankruptcy. The funds were used by Gemini to establish a reserve for liquidity needs and to facilitate immediate redemptions for Gemini Earn customers. It is important to note that the Winklevoss twins, the co-founders of Gemini, did not personally receive any of this money.
Gemini Challenges Genesis Bankruptcy Plan
Gemini has been opposing Genesis’ bankruptcy plan and has criticized its lack of clarity and specificity. Gemini argues that this complicates the payment process for creditors. Cameron Winklevoss, one of the co-founders, has openly addressed DCG’s CEO Barry Silbert during the ongoing legal dispute. He called out Silbert over an alleged inaccurate statement that Silbert refused to correct. Additionally, Gemini claims that Genesis has made no progress in paying the creditors since the lawsuit was filed in January.
Hot Take: Uncertainty Surrounding Genesis Bankruptcy
The withdrawal of “hundreds of millions of dollars” by Gemini from Genesis raises questions about the financial health and management practices of both entities. With ongoing legal disputes and allegations of inaccurate statements, the situation becomes more complicated. Creditors are still awaiting payment, and the bankruptcy plan lacks clarity, hindering their ability to comprehend the process. The bankruptcy proceedings have exposed potential issues within the crypto lending industry and highlight the importance of transparency and accountability in such operations.
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