According to reports from Bloomberg, before Digital Currency Group froze Genesis’ deposits and filed for bankruptcy in January, Gemini, owned by the Winklevoss twins, withdrew approximately $282 million in cryptocurrency. However, the source sharing this information wished to remain anonymous, so the details are still not entirely clear.
Genesis Filed for Bankruptcy in January
Genesis had halted customer withdrawal processes and left crypto markets in turmoil after FTX filed for bankruptcy in November of the previous year, leaving investors unable to access their funds. Genesis then applied for Chapter 11 bankruptcy protection in January, even though they had claimed to have $175 million locked up at the time.
Gemini Had Sought $1.1 Billion in Assets from Genesis
Following these events, Gemini filed a lawsuit against Genesis and its parent company, Digital Currency Group (DCG). Gemini accused DCG of “fraud against creditors” and attempted to claim the remaining assets of approximately $1.1 billion held in Genesis. However, DCG argued that this lawsuit was merely a publicity move and that the dispute between the two companies had been ongoing for some time.
In recent developments, on September 13th, Digital Currency Group proposed a new settlement plan for Gemini Earn users related to the bankruptcy of Genesis Global. This plan offers users the opportunity to recover almost all of their funds. You can read the details of the mentioned plan in our article below.
