SEC Lawsuits

The SEC just hit Genesis and Gemini with a lawsuit for selling unregistered assets from the lending program Gemini Earn.

U.S. Securities and Exchange Commission @SECGov

Today we charged Genesis Global Capital, LLC and Gemini Trust Company, LLC for the unregistered offer and sale of securities to retail investors through the Gemini Earn crypto asset lending program. For more:

Gemini was disappointed.

Tyler Winklevoss @tyler

1/ It’s disappointing that the @SECGov chose to file an action today as @Gemini and other creditors are working hard together to recover funds. This action does nothing to further our efforts and help Earn users get their assets back. Their behavior is totally counterproductive.

But I was not surprised about this.

Genesis was questionable trading in Hong Kong and lured many investors into with FTX Hong Kong branch to conduct very suspicious crypto trading that likely involved insider trading and fake pumping of crypto liquidity.

Then when FTX's sudden collapse makes, the Genesis Hong Kong branch suddenly closed up the shop, which spells more trouble coming down the road.

This is no just a wash trading, it is an international money laundry service through crypto.

Hard evidence is unlikely to be recovered, but the trouble spread into Gemini Earn, a program to market like a saving account through crypto lending services.

It markets the way a trust brand offers a good deal to save money, which is better than a bank but with an assurance of Gemini brand.

It did not work out well at the end when Genesis closed its shop, and Gemini Earn closed too.

Whatever Genesis did, it will return with its debts. Gemini is in the same boat.

Photo by Giammarco Boscaro on Unsplash