Crypto Lender Genesis Requests US Bankruptcy Court to Approve ‘Settlement Principle’

March 20, 2024 Bitcoin.com

Crypto Lender Genesis Agrees to $21 Million SEC Fine, Funds to Await Bankruptcy Claim Settlements

March 19, 2024 Bitcoin.com

Coin-for-Coin Payback — Gemini Announces Full Recovery of Crypto Assets for Earn Users After Genesis Settlement

March 1, 2024 Bitcoin.com

Gemini creditors revolt over ‘brutal’ Bitcoin slashing reorg plan

December 14, 2023 Coin Telegraph

Digital Currency Group and Genesis Global Reach Bankruptcy Agreement: Court Docs

November 30, 2023 The Daily Hodl

Crypto Exchange Gemini Says Investment Giant DCG Is Using Misleading Assertions in Bankruptcy Plan

September 17, 2023 The Daily Hodl

Gemini files brief in lawsuit against SEC, requests to keep it simple

August 20, 2023 Coin Telegraph

Coin Telegraph

In a recent court filing, Gemini continues to press for dismissal in its lawsuit against the SEC, citing unclear allegations and shifting arguments.

Cryptocurrency exchange Gemini has filed a reply brief as part of its effort to dismiss the lawsuit it is facing against the United States Securities and Exchange Commission (SEC).

The lawsuit alleges that “Gemini Earn” – a service enabling customers to lend crypto assets like Bitcoin (BTC) to Genesis – breached securities regulations by offering unregistered securities.

According to Aug. 18 court documents, filed in the U.S District Court for the Southern District of New York, Gemini has argued that the SEC has failed to make a clear claim.

“Section 5 of the securities act is not hard to understand” the filing stated, while arguing that the SEC has not clearly pointed out the requirements for claiming a violation of the act:

“The fact that the SEC cannot decide what is the security at issue only underscores the weakness of its position.”

It further argued that the court shouldn't tackle the "convoluted analyses" presented by the SEC, but rather pose straightforward questions to determine if it qualifies as a security or not.

It prompted questions including: When was the alleged security sold? Who was the buyer? Who was the seller? What price was offered or charged?

*Extract from the Aug. 18 court filing. Source: JFB Legal*

Gemini also contended that the SEC needs to highlight the unregistered security first, and then identify the sale or the offer to sell that security. It claimed the SEC has not fulfilled this.

“However, the SEC has not met that burden, and its opposition avoids the question before the court,” the filing stated.

On May 27, Gemini argued in a court filing that transactions carried out within the Gemini Earn program were essentially loans, requesting that the SEC to dismiss the complaint.

On Aug. 19, Jack Baugham, a founding partner of JFB Legal, which represents Gemini, made a statement on X (formerly Twitter), suggesting that the SEC is changing its argument as the lawsuit goes on.

“The SEC is floundering. They can’t even decide what the security is,” Baugham stated, noting the confusing nature of its argument:

“On the one hand, they claim that the Loan Agreement was a security. On the other hand, they claim that the entire Gemini Earn program was itself a security — an argument absurd on its face.”

Magazine: Deposit risk: What do crypto exchanges really do with your money?

‘You’ve Got To Be Kidding Me’: Cameron Winklevoss Responds to Barry Silbert’s Motion To Dismiss Gemini Lawsuit

August 12, 2023 The Daily Hodl

Barry Silbert and Digital Currency Group File To Dismiss Gemini Fraud Lawsuit Involving Alleged Debt Delinquency

August 11, 2023 The Daily Hodl

Winklevoss slams DCG’s Silbert — Not even SBF was ‘capable of such delusion’

July 4, 2023 Coin Telegraph

Alameda Research

In an open letter, Cameron Winklevoss slammed DCG's Barry Silbert for allegedly playing the victim card while owing $1.2 billion to Gemini’s 232,000 Earn customers.

Crypto exchange Gemini founder and CEO Cameron Winklevoss is again threatening to sue Digital Currency Group and its CEO Barry Silbert over delays in the resolution of Genesis for its Earn customers while slamming the CEOfor allegedly trying to play the victim card.

In the July 3 “Open Letter to Barry Silbert,” Winklevoss alleged the DCG enterprise had engaged in “fraudulent behavior” via a “culture of lies and deceit” — which have come at the expense of Gemini’s 232,000 Earn users.

Earn Update: An Open Letter to @BarrySilbert pic.twitter.com/ErsYpcEjQD
— Cameron Winklevoss (@cameron) July 4, 2023

Among the accusations, Winklevoss’ strongly-worded letter alleges that Silbert intentionally delayed resolution through “abuse” of the mediation process, stating:

"Mediation has given DCG an indefinite forbearance on the $630 million it owes Genesis — for free."

Most disturbing, according to Winklevoss, has been Silbert’s apparent claim of being the “victim” in the debacle.

“It takes a special kind of person to owe $3.3 billion dollars to hundreds of thousands of people and believe, or at least pretend to believe that they are some kind of victim," said Winklevoss, adding:

Not even Sam Bankman-Fried was capable of such delusion.”

DCG’s Genesis was the lender behind Gemini Exchange's Earn program, a product that promised returns as high as 8% to depositors. However, on November 16, Genesis announced it temporarily suspended withdrawals citing “unprecedented market turmoil.” Genesis later filed for bankruptcy on January 19.

Genesis later filed for bankruptcy on January 19, with Gemini seeking to recover its share of the billions owed by Genesis to creditors since.

However, after what Winklevoss has described as multiple delays, he appears to have had enough.

“I write to inform you that your games are over,” Winklevoss said, explaining that professional fees have now “ballooned” to over $100 million at the expense of credits and Earn users. “Enough is enough.”

Winklevoss has now given Silbert an ultimatum, accept his firm’s “best and final offer” by 4 pm ET on July 6 — or face a lawsuit on July 7.

*The final offer to DCG as presented by Cameron Winklevoss. Source: Twitter*

The offer pitched calls on DCG to make a $275 million payment by July 21, an additional $355 million before July 21, 2025 and a final payment of $835 million by July 21, 2028 — five years from the "Plan Support Agreement” date proposed by Winklevoss.

The total payment will come to $1.47 billion.

Winklevoss wants the payments to be made in the form of Bitcoin (BTC) Ether (ETH) and the United States dollar (USD), with the funds sourced from Genesis Global Trading, potential payouts from FTX and Alameda Research’s bankruptcy estates in addition to Avalanche (AVAX) and Near (NEAR) tokens it may have a claim to from Three Arrows Capital’s bankruptcy estate.

Cointelegraph reached out to DCG for comment but did not receive an immediate response.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom

Gemini EARN