The dispute between Gemini and Genesis caught the attention of the US Securities and Exchange Commission (SEC). The agency formally sued both companies, accusing them of selling unregistered securities.
SEC January 12 Cryptocurrency exchange Gemini and crypto lending platform Genesis in a statement published on its official website on unregistered sale of securities announced that he was accused of The product, which is the subject of the SEC accusation, has caused various discussions between the two companies for a while. “Earn” stated that the program Gensler shared about the subject on his social media account.
In accordance with the law of Corporation Gemini, Earn a program of movable value sale claimed to have features. Gensler used the following statements on the subject:
We argue that Genesis and Gemini are selling registered securities to the public, bypassing reporting requirements designed to protect investors. Today’s accusations are based on our previous actions to the market and public that crypto lending platforms and other intermediaries must comply with our securities laws. As we have seen many times in the past, failure to do this prevents investors from getting the basic information they need to make informed investment decisions. Our work in this area continues. This is a law, not an arbitrary decision.
On the other hand, Gemini co-founder Tyler Winklevoss if this action to further their efforts and Earn assets of the program back to take the SEC’s behavior, stating that it did not help completely inefficient claimed to be. Earn stated that the program is organized by the state of New York. winklevossabout the program 17 months SEC with contact in case of they are, and yet of the SEC blame for them before informing the public Said it was weird.
Recently Gemini “Earn” program customers withdraw money transactions suspended on the grounds of taking Genesis and roofing company To the Digital Currency Group (DCG) filed a class action lawsuit.