Jim Chanos was sued by a former partner accusing him of using his firm as a “piggy bank” with $10 million of outstanding loans that he borrowed from his company over more than a decade, according to a Bloomberg News report. Conlon Holdings, a Chicago-based firm run by Sean Conlon, filed the suit in New York State court over the weekend. Jim Chanos Scott Mlyn | CNBC

Famed short seller Jim Chanos called a lawsuit accusing him of embezzling funds for personal use, “false, baseless and defamatory.”

Chanos gave the statement CNBC’s Scott Wapner in response to allegations made by a former investor in Chanos & Co.

Conlon Holdings, a Chicago-based firm run by Sean Conlon, filed the suit in New York State court over the weekend, alleging that Chanos used his firm as a “piggy bank” with $10 million of outstanding loans that he borrowed from his company over more than a decade. The suit was originally reported by Bloomberg News.

“As Mr. Conlon knows, the internal loan was paid off in 2021, and since 2019 I have put over $30 million into my company,” Chanos said in the statement. “Indeed, all of my fellow management company partners have lost money over the past few years, none more than me. Mr. Conlon is simply trying to mitigate his losses by this crude shakedown attempt.”

Conlon didn’t immediately respond to a request for comment.

Chanos, best known for calling the collapse of energy trading company Enron, closed his hedge fund late last year and converted it to a family office and advisory business. His decision came after years of underperformance where short bets including Tesla didn’t work.

The lawsuit also alleged that Chanos sold his Miami apartment that was formally owned by Chanos & Co. for $17.8 million earlier this month without giving his partners advance notice. Meanwhile, the suit said Chanos’ girlfriend Crystal Conners was the sales agent on the transaction, which would have made $540,000 at standard commission rates, Bloomberg reported.

CNBC

Beth M. Hammack, 52, will take over as Cleveland Fed President when Loretta Mester steps down June 30. Hammack will take office officially on Aug. 21. The Cleveland Fed president plays an important role this year as a voter on the rate-setting Federal Open Market Committee.

A Goldman Sachs executive and finance industry veteran will take over as the new president of the Cleveland Federal Reserve.

The central bank district announced Wednesday that Beth M. Hammack, 52, will take over when Loretta Mester steps down June 30. Hammack will take office officially on Aug. 21. In the interim, Cleveland Fed First Vice President Mark S. Meder will serve as the president.

“It is a great privilege to serve the Fourth District, and the country, in fulfilling our mission of fostering a strong, stable economy in which all Americans have the opportunity to prosper,” Hammack said in a statement. “I cannot wait to lead the Bank’s talented team, who deliver every day on our important mission.”

As the Fed contemplates its next moves with monetary policy, the Cleveland president plays an important role this year as a voter on the rate-setting Federal Open Market Committee.

Mester mostly has been known for her more hawkish views, meaning she often has favored tighter economic policy to meet the central bank’s inflation mandate. In a recent speech, she offered several recommendations to her colleagues on improving communications, including more detailed post-meeting statements to provide greater explanation about the committee’s actions.

Hammack comes to the Cleveland Fed after serving with Goldman Sachs since 1993 in multiple roles, having been a partner since 2010 after being named managing director in 2003. Most recently, she served as global finance director.

She is a Stanford University graduate, holding degrees in quantitative economics and history.

“Beth has a deep understanding of financial markets and the monetary policy transmission process, expertise in leading complex business lines, and a proven commitment to mission-focused work,” said Heidi Gartland, chief government and community relations officer with University Hospitals and chair of the presidential search committee and the Cleveland Fed’s board of directors.

CNBC

Crypto exchange Gemini announced Wednesday that it will return $2.18 billion to users of the Earn program, which it paused withdrawals for in November 2022. It follows a $2 billion settlement from the New York attorney general with Genesis, Gemini’s lending partner, intended to make defrauded crypto investors whole again. Tyler Winklevoss and Cameron Winklevoss (L-R), creators of crypto exchange Gemini Trust Co. on stage at the Bitcoin 2021 Convention, a crypto-currency conference held at the Mana Convention Center in Wynwood on June 04, 2021 in Miami, Florida. Joe Raedle | Getty Images

Customers with funds locked up in crypto exchange Gemini’s defunct crypto lending program are finally going to start getting their money back.

The company, which is owned by tech billionaire twins Cameron and Tyler Winklevoss, announced Wednesday that it will return $2.18 billion of their digital assets to users of the Earn program, which it paused withdrawals for in November 2022.

“Today, we are pleased to let you know that initial Earn distributions — approximately 97% of the digital assets owed to you by Genesis as of the suspension date (November 16, 2022) — are now available in your Gemini account,” Gemini will tell its customers via email Wednesday.

“This follows our previous announcement that we reached a settlement with Genesis and other creditors in the Genesis Bankruptcy, which will result in all Earn users receiving 100% of their digital assets back in kind.”

The email adds: “This means that if you lent one bitcoin in the Earn program, you will receive one bitcoin back. And it means that you will receive any and all increase in the value of your assets since you lent them into the Earn program.”

At $2.18 billion, the fund distribution represents a 232% recovery for users since Gemini froze withdrawals for customers of its Earn program 18 months ago.

First launched in 2021, Earn enabled customers to get high yields on their coins by storing them in Gemini’s scheme. Gemini then lent customers’ crypto to institutional borrowers through Genesis Global Capital, its lending partner of choice.

In November 2022, Genesis Global Capital paused new loan originations and redemptions, forcing Gemini to halt withdrawals from its Earn program. Genesis filed for Chapter 11 bankruptcy protection last January in Manhattan federal court.

Last week, the New York Attorney General

CNBC