Genesis And DCG Loan Results In Arbitration Class Action Case Form Gemini Clients
Key Points:
- Genesis Global Capital and Digital Currency Group restricting withdrawals and Gemini stopping its Earn redemption scheme, three Gemini Earn users have requested class action arbitration against them.
- Genesis’ Master Agreement effectively results in unregistered securities transactions, and they are requesting the cancellation of the sale contracts and compensation for their losses.
- DCG CEO Barry Silbert and Gemini co-founder Cameron Winklevoss had a Twitter argument about plans to resume Genesis withdrawals, with Winklevoss accusing Silbert of using “bad faith stall tactics.”
In reaction to Genesis Global Capital and Digital Currency Group restricting withdrawals and Gemini stopping its Earn redemption scheme, three Gemini Earn users have requested class action arbitration against them.
A class-action lawsuit is frequently viewed as an alternative to class-action arbitration, a mechanism for resolving disputes between parties by a neutral third-party arbitrator. The arbitration process is often informal and voluntary. However, the arbitrator’s final ruling cannot be challenged so it may go more quickly and cheaply than a class-action lawsuit.
According to the plaintiffs, Genesis neglected to surrender their digital assets and those of all other Gemini Earn members as mandated by the Master Agreements between the company and users.
They contend that Genesis first violated the Master Agreement when the company went bankrupt in the summer of 2022 but failed to notify its clients of the situation.
DCG, to conceal the insolvency, exchanged the right to recover a $2.3 billion debt owed to Genesis by the now-insolvent hedge fund Three Arrows Capital for a promissory note with a due date of 2033 for a note with a $1.1 billion principal.
Genesis’ Master Agreement effectively results in unregistered securities transactions
The group further argues that Master Agreement effectively results in unregistered securities transactions, and they are requesting the cancellation of the sale contracts and compensation for their losses.
There is also a concurrent class action suit filed against Gemini in late December by investors Brendan Picha and Max J. Hastings, which alleges the exchange engaged in the sale of unregistered securities via its Earn program.
“When Genesis encountered financial distress as a result of a series of collapses in the crypto market in 2022, including FTX Trading Ltd. (“FTX”), Genesis was unable to return the crypto assets it borrowed from Gemini Earn investors,” a filing from the Pica and Hastings class action says. “[Gemini] refused to honor any further investor redemptions, effectively wiping out all investors who still had holdings in the program, including plaintiffs.”
Late on Monday, DCG CEO Barry Silbert and Gemini co-founder Cameron Winklevoss had a Twitter argument about plans to resume Genesis withdrawals, with Winklevoss accusing Silbert of using “bad faith stall tactics.”
Winklevoss claims that Genesis and DCG owe $900 million to Gemini and its customers, and he gave Silbert until January 8 to make a public commitment to resolving this issue.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Annie
Coincu News
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Genesis And DCG Loan Results In Arbitration Class Action Case Form Gemini Clients
Key Points:
- Genesis Global Capital and Digital Currency Group restricting withdrawals and Gemini stopping its Earn redemption scheme, three Gemini Earn users have requested class action arbitration against them.
- Genesis’ Master Agreement effectively results in unregistered securities transactions, and they are requesting the cancellation of the sale contracts and compensation for their losses.
- DCG CEO Barry Silbert and Gemini co-founder Cameron Winklevoss had a Twitter argument about plans to resume Genesis withdrawals, with Winklevoss accusing Silbert of using “bad faith stall tactics.”
In reaction to Genesis Global Capital and Digital Currency Group restricting withdrawals and Gemini stopping its Earn redemption scheme, three Gemini Earn users have requested class action arbitration against them.
A class-action lawsuit is frequently viewed as an alternative to class-action arbitration, a mechanism for resolving disputes between parties by a neutral third-party arbitrator. The arbitration process is often informal and voluntary. However, the arbitrator’s final ruling cannot be challenged so it may go more quickly and cheaply than a class-action lawsuit.
According to the plaintiffs, Genesis neglected to surrender their digital assets and those of all other Gemini Earn members as mandated by the Master Agreements between the company and users.
They contend that Genesis first violated the Master Agreement when the company went bankrupt in the summer of 2022 but failed to notify its clients of the situation.
DCG, to conceal the insolvency, exchanged the right to recover a $2.3 billion debt owed to Genesis by the now-insolvent hedge fund Three Arrows Capital for a promissory note with a due date of 2033 for a note with a $1.1 billion principal.
Genesis’ Master Agreement effectively results in unregistered securities transactions
The group further argues that Master Agreement effectively results in unregistered securities transactions, and they are requesting the cancellation of the sale contracts and compensation for their losses.
There is also a concurrent class action suit filed against Gemini in late December by investors Brendan Picha and Max J. Hastings, which alleges the exchange engaged in the sale of unregistered securities via its Earn program.
“When Genesis encountered financial distress as a result of a series of collapses in the crypto market in 2022, including FTX Trading Ltd. (“FTX”), Genesis was unable to return the crypto assets it borrowed from Gemini Earn investors,” a filing from the Pica and Hastings class action says. “[Gemini] refused to honor any further investor redemptions, effectively wiping out all investors who still had holdings in the program, including plaintiffs.”
Late on Monday, DCG CEO Barry Silbert and Gemini co-founder Cameron Winklevoss had a Twitter argument about plans to resume Genesis withdrawals, with Winklevoss accusing Silbert of using “bad faith stall tactics.”
Winklevoss claims that Genesis and DCG owe $900 million to Gemini and its customers, and he gave Silbert until January 8 to make a public commitment to resolving this issue.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Annie
Coincu News
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