Genesis sues Gemini over $689 million in customer withdrawals

FILE PHOTO: A representations of cryptocurrencies in this illustration taken, January 24, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

NEW YORK (Reuters) -Crypto lender Genesis Global on Tuesday sued partner Gemini Trust Co, seeking to recover more than $689 million that customers of the companies withdrew during a "run on the bank" that caused Genesis to collapse into bankruptcy.

Genesis in the lawsuit said up to 230,000 users in the two companies' "Earn" investing program withdrew more than half of billion dollars from the crypto lending platform in the 90 days before it filed for bankruptcy in January.