Gemini files lawsuit over ownership of nearly $1.6 billion in Bitcoin trust shares from Grayscale

Gemini is suing bankrupt crypto lending company Genesis to determine ownership of nearly $1.6 billion worth of shares in the Grayscale Bitcoin Trust. Gemini said in a bankruptcy court filing that Genesis has no right to the more than 60 million GBTC shares pledged as collateral for Gemini Earn products. The shares in dispute remain largely held by Genesis or its affiliates and should not be used to repay Genesis' other creditors. Genesis had previously proposed a settlement with its parent company, Digital Currency Group, but has now chosen to sue the company. This settlement would have allowed Genesis creditors to recover 70%-90%. Gemini disputes these estimates. Through this lawsuit, Gemini aims to clarify the value of its claim against Genesis and plans to eventually use GBTC shares to repay its users. Representatives of Genesis have not yet responded to the lawsuit. (Bloomberg)