The US Securities and Exchange Commission (SEC) apparently took into account the criticism that fell upon it after the collapse of the FTX crypto exchange. Therefore, from the new year I decided to work hard. On Friday, the regulator accused major US stock exchange Gemini of selling unregistered securities.
The lawsuit filed by the SEC alleges that Gemini and crypto lending platform Genesis Global Capital sold unregistered securities in the Earn program. The regulator writes that the firms have “raised billions of dollars worth of crypto assets from hundreds of thousands of investors” in this way.
“We contend that Genesis and Gemini offered unregistered securities to the public in circumvention of disclosure requirements designed to protect investors,” SEC Chairman Gary Gensler explained. “Today’s accusations should send a message to the market and the investing public that cryptocurrency lending platforms and other intermediaries must abide by our time-honored securities laws.”
Today we charged Genesis Global Capital, LLC and Gemini Trust Company, LLC for the unregistered offer and sale of securities to retail investors through the Gemini Earn crypto asset lending program.
For more:
— US Securities and Exchange Commission (@SECGov) January 12, 2023
The Earn product, launched in 2021, offered investors a return of up to 8% per annum on deposits made. In mid-November, payments under the program were suspended due to financial problems of the Genesis Trading OTC platform. The firm owes $900 million to exchange customers. The interests of 340,000 investors have been affected.
Gemini co-founder Cameron Winklevoss a few days ago at open letter urged Digital Currency Group CEO Barry Silbert to step down over $900 million in outstanding Genesis Trading debt under the Earn program.
The second co-founder of the exchange Tyler Winklevoss promised protect Gemini from SEC charges. He called the charges fabricated.
4/ We look forward to defending ourselves against this manufactured parking ticket. And we will make sure this doesn’t distract us from the important recovery work we are doing.
— Tyler Winklevoss (@tyler) January 12, 2023
▼
The most interesting and important news on our channel in Telegram
Comments (No)