BlocksInform
The U.S. Securities and Exchange Commission (SEC) alleged crypto exchange Gemini and crypto lender Genesis Global Capital sold unregistered securities in a lawsuit filed late Thursday.
The investment regulator has targeted earnings in gemini, the high-yield product that hundreds of thousands of U.S. investors have entrusted to their cryptocurrency. Gemini produces a return on billions of dollars in crypto by lending deposits to Genesis, who lent them back.
But Genesis’ November closing of lending withdrawals left some 340,000 Gemini Earn customers and about $900 million in crypto in limbo, the SEC said. (genesis is held by the digital money group, which also has coindesk). The regulatory authority blamed the popular program for not being registered.
"The defendants have offered and sold Gemini Earn Agreements through the Gemini Earn program without registering," said the complaint. Therefore, investors did not have important information on the Gemini Earn program that would have been relevant to their investment decisions."
The trial is the last twist of a CEO battle between Gemini's Winklevoss twins and DCG Chief Barry Silbert. The twins winklevoss, shaken by the collapse of their popular yield product, accused silbert of fraud in the management of his company from genesis; Silbert calls the charges made by the brothers a publicity stunt.
