Re:Genesis' Crypto-Lending Unit Is Suspending Withdrawals in...
by exabrial on Wednesday November 16, 2022 @11:22AM
(#33625683)
Then I'll pull it out as cash and they can fight me for it.
Re:Genesis' Crypto-Lending Unit Is Suspending Withdrawals in...
by automatic6131 on Wednesday November 16, 2022 @11:28AM
(#33625792)
If Genesis is found to be operating as a ponzi scheme (lol, lmao), then the bankruptcy court will send you a bill for the money you've withdrawn. You can try to fight that in court - but you'll lose. If you try to fight for it another way, I wish you the best of luck.
Re:Genesis' Crypto-Lending Unit Is Suspending Withdrawals in...
by FrobeniusTwist on Wednesday November 16, 2022 @01:18PM
(#33627865)
Your advice above about maybe not spending recent withdrawals is really good. I just want to point out that recovery of "preferences" (which is what these withdrawals might, possibly, be) doesn't depend on there having been a Ponzi scheme, or any fraud at all, in the underlying business. Identifying and recovering preferential transfers is one of the main jobs of a bankruptcy trustee, and they are given legal superpowers with which to do their jobs.
There can be clawbacks for anyone getting their money back within 90 days of bankruptcy filings. I wouldn't spend it all just yet.