- The SEC has accused both Gemini and Genesis of offering unregistered securities to individual customers through the Gemini Earn Program.
- Genesis currently owes Gemini customers $900 million.
- Gemini co-founder Tyler Winklevoss called the SEC’s actions “totally counterproductive.”
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The SEC has accused both Gemini and Genesis of offering unregistered securities to retail investors.
“I’m late for the game again”
Genesis’ situation continues to deteriorate.
Yesterday, the Securities and Exchange Commission submitted Indicted cryptocurrency lending firm Genesis and cryptocurrency exchange Gemini for offering and selling unregistered securities through Gemini’s Earn Program.
“Genesis and Gemini allege they offered unregistered securities to the public by circumventing disclosure requirements designed to protect investors,” said SEC Chairman Gary Gensler. . “Today’s charges build on previous actions to make clear to markets and investors that cryptocurrency lending platforms and other intermediaries must adhere to proven securities laws.”
Genesis is a subsidiary of Digital Currency Group. Genesis and Gemini launched the Earn program in December 2020, offering Gemini customers the possibility to lend their crypto assets to Genesis and earn interest. However, Genesis froze redemption services shortly after his FTX demise. The company now owes Gemini customers his $900 million. Gemini co-founder Cameron Winklevoss and DCG CEO Barry Silbert have been involved in a public dispute over the issue, with Winklevoss writing an open letter to his DCG board of directors asking Silbert to be removed from office as CEO of the company.
Gemini co-founder Tyler Winklevoss responded In a statement filed to Twitter by the SEC, it said the regulator’s actions were “totally counterproductive” and “optimized the political issue rather than helping.” [Gemini] Advancing the cause of 340,000 acquired users and other creditors. ”
Rep. Tom Emmer (Republican-Minnesota) also criticized SEC Approach: “Gary Gensler I’m late to the game again and no one is “protecting”. It is clear that his political “regulation by enforcement” strategy hurts everyday Americans. ”
Disclaimer: At the time of writing, the author of this article owned BTC, ETH, and several other cryptocurrencies.