Cryptocurrency exchange Gemini has sued crypto lender Genesis, its ragged exchange companion on the Gemini Diagram program, to build up management of about $1.6 billion in Grayscale Bitcoin Believe (GBTC), in accordance to a brand new court docket submitting.

The lawsuit centers spherical 60 million shares of GBTC that Genesis used to be preserving as collateral.

In a file filed with the U.S. Financial pain Court docket Southern District of New York, Gemini said that retrieving these sources would repay Diagram customers, who had first and major agreed to lend their cash for monetary reward but as a alternative had their sources locked up when Genesis suspended withdrawals closing 365 days.

“Genesis has over and over taken actions to anguish Diagram users and to hinder and extend Diagram users’ recovery of their digital sources,” wrote Gemini’s lawyers within the submitting. “It’s time to resolve these complications so that Genesis would possibly possibly well additionally fair switch ahead with an cheap arrangement of reorganization and Gemini would possibly possibly well additionally fair distribute the proceeds of the collateral to Diagram users.”

Final week, New York Attorney Overall Letitia James filed slide well with against Gemini, Genesis, and Genesis parent Digital Forex Neighborhood (DCG) for allegedly defrauding merchants of extra than $1 billion.

Genesis then urged a court docket on Tuesday that, reasonably than await the final result of the NY slide well with, the company will propose a “no deal” monetary catastrophe that can perchance well distribute its on hand sources to customers while guaranteeing the company would possibly possibly well additionally soundless pursue its monetary complaints against parent company DCG.