Gemini —a crypto exchange and major Genesis client — accused Ballensweig of falsely reassuring Gemini in July that Genesis was financially stable. Gemini claimed that Ballensweig told its representatives that Genesis had “capital to operate… for the long term,” according to court filings.
Ballensweig spent his final nine months at Genesis as managing director and co-head of trading and lending.
Ballensweig pitched the flagship product as an “alpha multistrat (delta neutral),” or a fund specializing in multi-strategy, low-risk, high-return investments. He added that the they would also launch two other beta products including a “Top 25 Index” and a “DeFi beta.”
“Think you’d be a valuable early partner,” Ballensweig said in his pitch.