In a lawsuit filed Tuesday in New York bankruptcy court, Genesis claims Gemini’s withdrawals were unprecedented and amounted to a “run on the bank” at the expense of the cryptocurrency lender’s other creditors.

The lawsuit escalates the bankruptcy disputes between Genesis and Gemini, which collaborated on the Gemini Earn programme that allowed customers to earn about 8% interest on their digital assets. Last month, Gemini sued Genesis in an attempt to determine who rightfully owns a portion of Grayscale Bitcoin Trust shares worth about $1.6 billion.

Gemini’s lawyers did not respond Wednesday to a request for comment.

Chapter 11 generally gives bankrupt companies like Genesis the ability to recover funds paid months before bankruptcy, even if the beneficiaries did nothing wrong. The right is meant to ensure that some creditors don’t get a windfall just because they were able to get their money out of a bankrupt company while others didn’t.

Genesis said Tuesday that it filed the lawsuit to put Gemini on an equal footing with other creditors and to correct the injustice created by the significant withdrawal of funds prior to the bankruptcy filing. The statement of claim states that between 20 October 2022 and 11 November 2022, withdrawals totalling approximately $689.3 million were made.

The withdrawals referred to in the lawsuit occurred before Genesis suspended loans and advances on its platform on 16 November. Genesis said it was already insolvent at the time the transfers were made.