![]() ![]() There are also questions, Powers and others point out, posed by FTX’s failure to specify the dates of the withdrawals in its filing.īut it’s not guaranteed that, even if the New York judge allows FTX’s claim to continue, the dispute will ever get to court. If the case proceeds, GGC will likely argue that the $1.8 billion in loan repayments were made in the ordinary course of business, which would exempt them from being recalled. There would effectively be two judges, from different jurisdictions, involved to some degree in both bankruptcies, says Powers. Yet in the event the motion is granted, things will get messy. ![]() “Given the size of the claim, I think it would be extremely disruptive.” “I don’t think the Genesis bankruptcy court will grant the motion of FTX,” Powers says. Gemini did not respond to a request for comment. But should FTX be successful in its clawback, the 340,000 Gemini Earn customers will be left significantly out of pocket. Gemini has already liquidated $280 million worth of collateral posted in August by GGC to make back some of the funds lost. When the lender filed for bankruptcy, $900 million of Gemini customers’ assets were locked inside. The firm’s yield farming service, Gemini Earn, which allowed customers to earn interest on their crypto, fed into GGC’s loan book. The largest of those GGC creditors is Gemini, the crypto exchange founded by Cameron and Tyler Winklevoss. “Why should the FTX bankruptcy, or FTX as a potential creditor of Genesis, be more important than any other?” he asks. Marc Powers, adjunct professor of law at Florida International University, who acted as counsel in the liquidation of Bernie Madoff’s infamous Ponzi scheme, says that the exchange is attempting to “jump ahead of the other creditors” in the GGC bankruptcy. Legal experts, though, say they’re skeptical of FTX’s chances. FTX claims each of these transactions should be reversed. The suit alleges that Alameda paid GGC $1.8 billion in loan repayments and $270 million in collateral pledges, and that the lender-and non-bankrupt affiliate GGC International Limited-withdrew $1.8 billion from FTX’s trading platform, all in the 90 days before the exchange filed for bankruptcy. The number of coins held by institutions through trusts, ETFs and funds has spiked since then, reaching its highest level in more than a year, according to CryptoQuant, and bitcoin open interest is back to pre-FTX levels.Now, GGC has to fend off FTX’s clawback claim too. Speaking on Fox Business News on Wednesday, Fink called bitcoin "an international asset" and said it's "not based on any one currency so it can represent an asset that people can play as an alternative."īitcoin has steadily climbed since June 15, when BlackRock, the largest asset manager in the world, first filed to launch a spot bitcoin ETF. ![]() Sentiment among traders was high though, after BlackRock CEO Larry Fink gave bitcoin perhaps its biggest ever endorsement from a major institutional player. That will eventually be broken, but meanwhile traditional markets seem to be entering a more risk-off mood – we can't yet assume that bitcoin will just shrug that off." "We have often over the past few weeks seen selling resistance at around $31,000. "There is still a weight on the price," said Noelle Acheson, economist and author of the "Crypto is Macro Now" newsletter. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit ![]()
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