SEC Charges Gemini & Genesis Over Unregistered Gemini Earn Product

• 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.
• According to the SEC, the Gemini Earn allowed Gemini and Genesis to earn billions of dollars from investors despite the product being unregistered.
• Genesis has been having liquidity issues after FTX’s collapse and has paused withdrawals to date.

The US Securities and Exchange Commission (SEC) has recently filed charges against two of the largest crypto companies in the market, Gemini and Genesis, accusing them of selling unregistered securities. The charges come after the two firms had a partnership that allowed Gemini customers to earn yield by lending their crypto assets to Genesis.

The partnership allowed Gemini and Genesis to earn billions of dollars from investors despite the product being unregistered. According to the SEC, the two companies 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.

The product, Gemini Earn, was launched in February 2021 and ran until January 8, 2022. However, Genesis has been facing liquidity issues due to the collapse of FTX and has had to pause withdrawals as a result. This has left many investors in a difficult situation as they are unable to access their funds.

The SEC has issued a statement that says that the charges against Gemini and Genesis are a warning to all companies operating in the cryptocurrency space. They have warned companies to be aware of the regulations in place and to ensure that their business models comply with the relevant rules and regulations.

The charges come at a time when the crypto industry is becoming increasingly regulated and strict. It is important for companies to ensure that their activities are in line with the laws and regulations of the countries in which they operate. This will help to ensure that the crypto industry is able to grow and develop in a safe and secure manner.