Application for arbitration against Genesis Global Capital, DCG company, which is accused of organizing an apparent transaction -

Three users of Gemini Earn accused Genesis Global Capital of the breach of the contract and then submitted an application for a collective arbitration procedure in the American Arbitration Association. In addition, the three users claim that all transactions "represented non -registered sales of securities" and must therefore be reversed.

"A false transaction"

A demand for class arbitration In one case in which three Gemini earn users against Genesis Global Capital (GGC), his parent company, the digital currency Group (DCG) and Genesis compete global trading, was submitted to the American Arbitration Association (AAA). According to a statement by Silver Golub & Teitell, the law firm that represents the plaintiffs. GGC and the affiliated companies are accused of violating the provisions of the so -called framework contract.

according to December 30, 2022 statement , the plaintiffs claim the initial breach of contract, "when GGC became insolvent in the summer of 2022, but hid his bankruptcy from lenders". The explanation adds that GCC was able to achieve this through "orchestration of an apparent transaction", at which DCG acquired the right to “collect a debt of $ 2.3 billion, which the insolvent Hedge Arrows Arrows Capital GGC is due to 1.1 billion US dollar in 2033.”

Genesis Global Capital is accused of having sold not registered securities

The refusal of GCC to recognize or fix bankruptcy was the same as the plaintiffs as a breach of contract. In addition, the plaintiffs claim that this alleged bankruptcy was a "default case that automatically ended the loans between the plaintiffs and GGC and thus triggered the obligation of GGC to return the plaintiffs' digital assets".

The explanation added:

The plaintiffs also claim that GGC continued to violate the framework contract from November 16, 2022, since GGC refused to return the digital assets of Gemini users, although Gemini users have requested the return of borrowed assets in accordance with the framework contract, and failed to pay Gemini Earn users Interest payments due at the end of November.

as before reported according to bitcoin.com news fror, the subsidiary of GGC, Genesis Global Trading (GGT), on November 16, withdrawals and new lending, and according to a company spokesman, this decision was "made in response to the extreme market deflection and the loss of trust in the industry". At the time, the spokesman insisted that the decision had no effect on the DCG and its other units.

In the meantime, the plaintiffs also argued in addition to the allegations of the breach of contract that "all transactions that were concluded in accordance with the framework contract were not registered sales of securities". As a result, the plaintiffs demand the cancellation of the purchase contracts on this basis.

What do you think about this story? Let us know your opinion in the comment area below.

Terence Zimwara

Terence Zimwara is an award -winning journalist, author and writer from Zimbabwe. He wrote in detail about the economic problems of some African countries and how digital currencies Africans can offer an escape route.

Bedy verification : Shutterstock, Pixabay, Wikicommons