Genesis Sues Gemini Over $689M in Customer Withdrawals Amid Bankruptcy

Gemini, run by the Winklevoss twins, argues Genesis should fully repay customers, not claw back funds from users who made withdrawals.

Crypto lender Genesis Global has sued Gemini Trust, seeking to recover over $689 million that customers withdrew during a 'run on the bank' that led to Genesis' bankruptcy.
Genesis claims up to 230,000 users in the two companies' 'Earn' investing program withdrew more than half a billion dollars from the crypto lending platform in the 90 days before it filed for bankruptcy.
US bankruptcy law allows these withdrawals to be clawed back so Genesis can make a fairer redistribution among all of its creditors.
Gemini, run by the Winklevoss twins, argues that Genesis should fully repay customers, rather than attempting to claw back funds from users who made withdrawals.
Genesis is moving ahead with a bankruptcy liquidation that would return some cryptocurrency to customers without fully resolving competing legal claims.