Gemini sued over $689M in customer withdrawals

[pants2]

So Gemini is suing Genesis for $1.6B. Genesis is suing Gemini for $0.7B. The New York AG is also suing both of them. The SEC is also suing both of them.

I just hope there's a few bucks left over for the investors after all the legal fees.

[grotorea]

Serious and naive question: I know lawyers are expensive, but on the scale of hundreds of millions?

[Analemma_]

Banks and trading firms can’t use customer deposits to pay their legal expenses.

Oh wait, haha, I was thinking of real banks with regulation, but this is crypto world. Yeah, your moneys’s gone.

[spamizbad]

They could've focused on rowing. Coached the next generation. Instead they're doing this. A huge shame.

[Darmody]

I'm not going to defend them over this but I'm 100% sure that they wanted to be as successful (or more) than Zuckerberg.

[rchaud]

The curse of the 'serial entrepreneur'.

[atarian]

Why would Gemini be at fault for customers withdrawing funds? Isn't Genesis at fault for not having the liquidity to support the withdrawals?

[everfree]

Looking closely, it seems like the lawsuit is purely about bankruptcy clawback.

Genesis wants Gemini to give back all customer withdrawals looking back 90 days from Genesis' bankruptcy. The idea is to add these withdrawals to the bankruptcy to be redistributed to all creditors.

[psychlops]

Just because they are sued doesn't mean they are at fault. The court will decide fault.

[starlevel003]

Man, I didn't realise HTTP alternatives were so serious.