SEC complains Genesis and Gemini - Winklevoss says that the lawsuit of the regulatory authority is super lame - regulation
SEC complains Genesis and Gemini - Winklevoss says that the lawsuit of the regulatory authority is super lame - regulation
The US Securities and Exchange Commission (SEC) charged the Gemini crypto exchange and the crypto creditor Genesis Global Capital, a subsidiary of the Digital Currency Group (DCG). "This non-registered offer has collected Genesis and Gemini crypto-assets worth billions of dollars from hundreds of thousands of investors," said Sec.
second takes measures against Gemini and Genesis
This announced the US stock exchange supervisory authority SEC on Thursday Calculated Genesis global capital LLC and Gemini Trust Company LLC "For the non-registered offer and the sale of securities to small investors through the crypto assets program Gemini Earn". Genesis is part of a subsidiary of the Digital Currency Group (DCG). The supervisory authority found that the investigation continued and claimed:
This unregistered offer collected Genesis and Gemini crypto-assets worth billions of dollars from hundreds of thousands of investors.
The SEC described that Genesis concluded an agreement with Gemini in December 2020 to offer Gemini customers, including small investors in the USA, "to give, to pay, to pay their crypto-assets in exchange for the promise of genesis, interest".
The two companies offered private investors between February 2021 and November 2022 The cryptocurrency credit program Gemini Earn continued, the securities guard continued and added: "More than 50 crypto-assets were invested in the Gemini Earn program, including Bitcoin, ether, USD Coinund Dogecoin."
according to Sec:
Gemini Earn investors submitted their crypto-assets at Genesis, with Gemini acting as an agent to facilitate the transaction. Genesis then practiced his discretion of how the crypto assets of the investors should be used to generate income and pay interest on Gemini Earn investors.
Genesis stops payments
The SEC explained that Genesis had announced in November last year that Gemini Earn investors should not withdraw their crypto-assets, "because genesis did not have sufficient liquid funds to comply with the volatility of the crypto-asset market".
At this point in time, "Genesis held around $ 900 million in investor assets of 340,000 Gemini Earn investors," added the Sec and found:
Gemini ended the Gemini Earn program at the beginning of this month. To date, the small investors of Gemini Earn have still not been able to withdraw their crypto-assets.
Last week Gemini co-founder Cameron Winklevoss an open letter to DCG CEO barry Silbert regarding the payment stop. In a followed he called for the resignation of Silbert. The DCG boss then wrote a letter to the shareholders to work against him.
Gemini's co-founder calls the SEC campaign "Super Lahm"
After the announcement of the SEC lawsuit against the two crypto companies, Tyler Winklevoss, another Gemini co-founder, went to Twitter to beat up the security supervision. He explained that the crypto credit program Gemini Earn is regulated by the New York Department of Financial Services (NYDFS).
In addition, Winklevoss revealed: "We have been talking to the SEC about the Earn program for more than 17 months ... You have never prospect the prospect of enforcement measures until Genesis had suspended the payments on November 16." He said:
Despite these ongoing talks, the SEC decided to tell the press from us before notification. Super lame.
"It is unfortunate that they optimize for political points instead of helping us to advance the matter of 340,000 Earn users and other creditors," concluded the Gemini co-founder.
What do you think that the SEC is going against Gemini and Genesis because of the Earn crypto credit program? Let us know in the comment area below.
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