Crypto Lending Crisis - Gemini and Genesis Charged by US SEC With Selling Unregistered Securities
SEC Chair Gary Gensler. Source: a video screenshot, Yahoo Finance / YouTube The US Securities and Exchange Commission (SEC) brought charges against major crypto exchange Gemini and the troubled crypto lending and trading firm Genesis . Per the press release issued by the regulator on January 12, "The [SEC] today charged Genesis Global Capital, LLC and Gemini Trust Company, LLC for the un registered offer and sale of securities to retail investors through the Gemini Earn crypto asset lending program." The regulator alleged that through this un registered offering, the two companies raised "billions of dollars" worth of crypto assets from "hundreds of thousands of investors." The complaint seeks permanent injunctive relief, disgorgement of ill-gotten gains and prejudgment interest, as well as civil penalties. The SEC’s complaint alleges that the Gemini Earn program constitutes an offer and sale of securities and that it should have...