Crypto exchange Gemini reportedly withdrew a total of $282 million from Genesis Global Capital several months before the crypto lending platform filed for bankruptcy, Bloomberg has reported.
The company, which is owned by the Winklevoss twins, is trying to recover $1.1 billion through the courts.
Genesis incurred a debt to Gemini customers under the Earn program, which allowed the exchange's customers to receive returns on digital assets loaned to the platform.
Subscribe to our Telegram channel to get weekly short digests about events that shape the crypto world
The $282 million in question was converted into a reserve to ensure that the clients' requirements were met.
Genesis Global Capital froze back in November the withdrawal of funds and the issuance of new loans due to "increased demands" from clients following the collapse of FTX.