Gemini sued over $689M in customer withdrawals

[mfiguiere]

https://nypost.com/2023/11/22/business/winklevoss-twins-crypto-firm-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 → pants2]

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

[wmf → grotorea]

FTX is kind of a special case, but yes: https://www.nytimes.com/2023/09/05/technology/crypto-collaps...

[ChilledTonic → grotorea]

I believe the comment you are responding to is in jest, or sardonic.

[Analemma_ → pants2]

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.

[everfree → Analemma_]

Hm. Their "about" page seems to claim that they are a Qualified Custodian, which means they legally have to segregate their customer deposits from their own operating funds.

> Gemini is a New York trust company regulated by the New York State Department of Financial Services (NYSDFS). We are subject to capital reserve requirements, cybersecurity requirements, and banking compliance standards set forth by the NYSDFS and the New York Banking Law. Gemini is also a fiduciary and Qualified Custodian.

[knodi → Analemma_]

But but its self-governed and managed.... managed by crooks.

[yownie → Analemma_]

If we want angry hot takes we'll go to reddit. Don't muck up HN with your drivel.

[spamizbad]

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

[Darmody → spamizbad]

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.

[wslh → Darmody]

"The Social Network 2". Well crypto will create more movies in the next few years.

[rchaud → wslh]

straight-to-IPFS no doubt.

[rchaud → spamizbad]

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 → atarian]

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 → atarian]

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.