Gemini sues Genesis over ownership of GBTC worth nearly $1.6 billion

Bloomberg News reported that cryptocurrency platform Gemini Trust Co. is suing bankrupt cryptocurrency lending firm Genesis Global Holdco LLC, trying to determine who legally owns the GBTC stock of Grayscale Bitcoin Trust Company, currently worth nearly $1.6 billion. In the bankruptcy court lawsuit filed on Friday, Gemini asked a federal judge to rule that Genesis has no right to obtain over 60 million shares of GBTC stock pledged as collateral by users of Gemini Earn products. The company argued that the shares involved (most of which are still held by Genesis or its affiliates) should not be used to repay other Genesis creditors.