Gemini and Genesis Can Be Sued by SEC Over Defunct Earn Product, Judge Rules (2024)
A New York judge ruled that the U.S. Securities and Exchange Commission’s complaint against Gemini and Genesis “plausibly alleges” that the two firms violated securities laws.
The Wednesday motion tosses out the two firms’ motions to dismiss filed last May.
Up to 340,000 Gemini Earn customers have had their crypto stuck in limbo since November 2022, when Genesis halted withdrawals due to liquidity issues.
A New York judge has ruled that the U.S. Securities and Exchange Commission (SEC) case against crypto lender Genesis and crypto exchange Gemini will be allowed to move forward, denying the two defendants’ motions to dismiss in a Wednesday court filing.
Judge Edgardo Ramos, of the Southern District of New York, found that the regulatory agency’s complaint “plausibly alleges” that the two firms violated securities laws – allegedly offering and selling unregistered securities to retail investors – through the now-defunct Gemini Earn program. A ruling on a motion to dismiss generally has to accept the plaintiff's facts as true, and doesn't indicate how the court might ultimately rule on the SEC's allegations about whether Earn violated securities laws.
Gemini Earn was first available to retail customers in February 2021, offering as much as 8% interest on crypto tokens invested through the program. According to the SEC’s complaint, Gemini Earn had approximately 340,000 retail users and $900 million in assets on its platform when, in November 2022, Genesis halted withdrawals, citing “withdrawal requests which have exceeded our current liquidity.”
Against the backdrop of an escalating and public dispute between the leadership of the two firms, Gemini Earn was shuttered on Jan. 10, 2023. Two days later, the SEC filed charges against both companies. That same month, Genesis filed for bankruptcy.
In May 2023, Gemini and Genesis both filed motions to dismiss the case against them, as well as subsequent alternative motions to strike the SEC’s request for permanent injunctive relief and disgorgement against both firms. Judge Ramos denied each of them, and ruled that the case be allowed to proceed.
Earn. A New York judge ruled that the U.S. Securities and Exchange Commission's complaint against Gemini and Genesis “plausibly alleges” that the two firms violated securities laws.
According to the SEC's complaint, the Gemini Earn program was a purported investment opportunity where Gemini customers, including retail investors in the United States, loaned their crypto assets to Genesis in exchange for Genesis' promise to pay interest earned from Genesis' use of the loaned crypto assets.
Crypto firm Genesis Global Capital agreed to pay a $21 million civil penalty to the Securities and Exchange Commission (SEC) to settle charges that the Gemini Earn investment program was an unregistered security offering.
"Gemini marketed its Earn program as a way for investors to grow their money, but actually lied and locked investors out of their accounts," James said. "Today's settlement will make defrauded investors whole." The funds will be accessible within seven days, Gemini told investors on Friday.
The settlement, which required review and approval by a bankruptcy court due to Genesis' previous bankruptcy declaration, will establish a victims fund to help defrauded investors, including at least 29,000 New Yorkers, who contributed more than $1.1 billion to Genesis through the Gemini Earn investment program.
If both partners find the patience to commit to the relationship and are willing to work on improving any problems, then the Gemini-Gemini pairing can be magical. As these signs are highly adaptable, flexible, and independent, there will be a wealth of freedom and understanding in this pairing.
Which signs are most compatible with Gemini? According to Thomas, Gemini tend to get along best with fire signs (Aries, Leo and Sagittarius) and fellow air signs (Libra and Aquarius). Astrologically speaking, fire and air signs are considered masculine elements, he explains, meaning they have a more active energy.
Google and Team USA's advertisem*nt for Google's generative AI chatbot Gemini. This advertisem*nt sparked widespread backlash online about the growing role of generative AI tools and their impact on human creativity, productivity and communication.
Genesis's $21 Million Settlement With SEC Green Lit by Judge
The SEC sued Genesis and Gemini Trust Co. in January 2023, alleging that the companies illegally raised billions of dollars' worth of cryptoassets from investors through the so-called Gemini Earn program.
Gemini announced Wednesday that its Gemini Earn users have received all their digital assets back in-kind. This means, for instance, that if a customer lent one bitcoin to the Earn program, they will receive one bitcoin back, the company said in a release.
On January 12, 2023, The SEC charged Genesis Global Capital LLC and Gemini Trust Company LLC with offering and selling unregistered securities to users through its Gemini Earn lending program. According to the complaint, investors were unable to withdraw crypto from their accounts due to an alleged lack of liquidity.
The Genesis Invitational was a PGA Tour signature event. The purse was $20 million, with a winner's share of $4 million. Hideki Matsuyama was the winner.
In January 2023, Gemini and Genesis were charged by US regulators with illegally selling crypto assets to hundreds of thousands of investors. The companies were accused of breaking the law by offering and selling the products through Earn, which launched in 2021.
Genesis filed for Chapter 11 bankruptcy protection in New York in January 2023 following the troubles it faced from its exposure to Three Arrows Capital, a collapsed crypto hedge fund, and FTX, which is also under bankruptcy process. At the time of bankruptcy, it owed over $3.5 billion to the top 50 creditors alone.
In Greek mythology, Gemini was associated with the myth of Castor and Pollux, the children of Leda and Argonauts both. Pollux was the son of Zeus, who seduced Leda, while Castor was the son of Tyndareus, king of Sparta and Leda's husband.
Gemini and Aquarius are a great match in love or friendship. They make each other think, share intellectual interests, and admire each other's independence. These two understand each other on a deep level, and therefore have the potential for a magical relationship, whether it's romantic or platonic.
Why, it's heavenly! Gemini and Aquarius might not need this article to know they're astrologically compatible — already do know. The two air signs are known to have a sparkling, superb connection. Extroverts at heart, they both thrive on innovation and social interaction.
The story most closely associated with Gemini is the legend of Castor and Polydeuces (Pollox in Latin) from Greek mythology. Castor and Polydeuces were identical twins born to Leda, Queen of Sparta, by two different fathers. Castor was said to be the son of Leda's husband, King Tyndareus and thus mortal.
Introduction: My name is Terrell Hackett, I am a gleaming, brainy, courageous, helpful, healthy, cooperative, graceful person who loves writing and wants to share my knowledge and understanding with you.
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