{"id":16413,"date":"2023-01-13T10:23:43","date_gmt":"2023-01-13T10:23:43","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/us-sec-has-filed-charges-against-gemini-and-genesis\/"},"modified":"2023-01-13T10:23:43","modified_gmt":"2023-01-13T10:23:43","slug":"us-sec-has-filed-charges-against-gemini-and-genesis","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/us-sec-has-filed-charges-against-gemini-and-genesis\/","title":{"rendered":"US SEC has filed charges against Gemini and Genesis"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"post-article-image  -mt-24  mb-8  lg:-mt-32  rounded  overflow-hidden\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/1970\/01\/1673597588087-3b29dda8-ace7-4f02-957a-bbb06bd39d4c-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/1970\/01\/1673597588087-3b29dda8-ace7-4f02-957a-bbb06bd39d4c-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/1970\/01\/1673597588087-3b29dda8-ace7-4f02-957a-bbb06bd39d4c-smartcrop-750x375.jpg\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/1970\/01\/1673597588087-3b29dda8-ace7-4f02-957a-bbb06bd39d4c-smartcrop-363x181.jpg\" type=\"image\/jpeg\"\/><\/picture><\/div>\n<ul>\n<li>The US SEC is accusing Gemini and Genesis of selling unregistered securities.<\/li>\n<li>Genesis and Gemini did not register their partnership as a lending partnership.<\/li>\n<li>Genesis has been having liquidity issues after FTX\u2019s collapse and has paused withdrawals to date.<\/li>\n<\/ul>\n<p>The US Securities and Exchange Commission (SEC) has filed charges against Genesis and Gemini accusing the two of selling unregistered securities through the Gemini Earn product.<\/p>\n<p>According to the SEC, the Gemini Earn allowed Gemini and Genesis to earn billions of dollars from investors despite the product being unregistered.<\/p>\n<h2>Unregistered lending partnership<\/h2>\n<p>Gemini introduced the Gemini Earn product in February 2021 and the product ran until January 8 2022. \u00a0At the same time, Gemini had a partnership with Genesis, which is a subsidiary of Digital Currency Group (DCG). The partnership allowed Gemini customers to earn yield by lending their crypto assets to Genesis.<\/p>\n<p>The SEC however claims that the two firms (Genesis and Gemini) misrepresented their business model by advertising returns of up to 8% to clients without first registering the partnership as a lending partnership with the relevant authorities.<\/p>\n<h2>Genesis withdrawals<\/h2>\n<p>To make matters worse, Genesis found itself in turmoil after the <a href=\"https:\/\/coinjournal.net\/news\/expect-crypto-contagion-as-ftx-crisis-is-far-from-over\/\">FTX\u2019s collapse<\/a> and even <a href=\"https:\/\/coinjournal.net\/news\/genesis-2-8b-crypto-lending-unit-halts-withdrawals\/\">paused withdrawals due to liquidity issues<\/a>. According to open letters written by Cameron Winklevoss, the co-founder of Gemini Earn, Genesis currently owes $900 million to 340,000 users of the Earn product.<\/p>\n<p>The SEC also claims that the \u201cUS retail investors who participated in the Gemini Earn program have suffered significant harm.\u201d The SEC Chair Gary Gensler said:<\/p>\n<p><em>\u201cToday\u2019s charges build on previous actions to make clear to the marketplace and the investing public that crypto lending platforms and other intermediaries need to comply with our time-tested securities laws.\u201d<\/em><\/p>\n<p>Gemini co-founder has however said that Gemini will defend itself saying that SEC claims are \u201cparking ticket.\u201d<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/coinjournal.net\/news\/us-sec-has-filed-charges-against-gemini-and-genesis\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News ) The US SEC is accusing Gemini and Genesis of selling unregistered securities. Genesis and Gemini did not register their partnership as a lending partnership. Genesis has been having liquidity issues after FTX\u2019s collapse and has paused withdrawals to date. The US Securities and [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":16414,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/16413"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=16413"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/16413\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/16414"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=16413"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=16413"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=16413"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}