{"id":72460,"date":"2023-01-13T10:24:33","date_gmt":"2023-01-13T08:24:33","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=72460"},"modified":"2025-09-08T15:21:21","modified_gmt":"2025-09-08T12:21:21","slug":"sec-accuses-gemini-of-selling-unregistered-securities","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/sec-accuses-gemini-of-selling-unregistered-securities\/","title":{"rendered":"SEC accuses Gemini of selling unregistered securities"},"content":{"rendered":"

The bitcoin exchange Gemini and the crypto-lending platform Genesis Global Capital sold unregistered securities in the Earn program. This is stated in alawsuit<\/a> by the U.S. Securities and Exchange Commission (SEC).<\/p>\n

The Earn lending product offered investors yields of up to 8% per year on deposited funds. In mid\u2011November, Gemini paused payments under the program. This occurred amid financial problems of the main partner<\/a> \u2014 the OTC platform Genesis Global Capital.<\/p>\n

The document confirms media reports of the firm owing $900 million to the exchange’s clients<\/a>. Investors’ interests were harmed.<\/p>\n

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“The defendants offered and sold Gemini Earn agreements without registration with the regulator. As a result, investors lacked material information [\u2026] that would be relevant to their investment decisions”,<\/em> the lawsuit states.<\/p>\n<\/blockquote>\n

Gemini co\u2011founder Tyler Winklevoss called the SEC’s allegations “super-unconvincing” and a “fabricated parking ticket”.<\/p>\n

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2\/ As a matter of background, the Earn program was regulated by the @NYDFS<\/a> and we\u2019ve been in discussions with the SEC about the Earn program for more than 17 months. They never raised the prospect of any enforcement action until AFTER Genesis paused withdrawals on November 16th.<\/p>\n

\u2014 Tyler Winklevoss (@tyler) January 12, 2023<\/a><\/p><\/blockquote>\n

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“The Earn program was regulated by the NYDFS<\/span>. We had been in discussions with the SEC about the Earn program for more than 17 months. They never raised the possibility of any enforcement action until Genesis paused withdrawals on November 16,”<\/em> he explained.<\/p>\n<\/blockquote>\n

Winklevoss pledged to defend Gemini against the SEC’s accusations and to ensure this does not distract from the work.<\/p>\n