BusinessSEC-Gemini/Genesis Case Will Proceed in Court

SEC-Gemini/Genesis Case Will Proceed in Court

The SEC Case Against Genesis and Gemini: An Update

By Mark Hunter

Published: 19 hours ago on Thu Mar 14 2024 10:36:04

SEC-Gemini-Genesis-Case-to-Progress

Estimated Reading Time: 2 minutes

Genesis and Gemini’s Attempt to Dismiss SEC Case Rejected

  • Despite efforts by Genesis and Gemini, a judge has denied their motion to dismiss the SEC case.
  • The SEC accuses the companies of offering unregistered securities to retail investors through Gemini Earn.
  • This ruling enables the SEC to proceed with its case and reinforce its argument on cryptocurrency securities.

In the ongoing legal battle between the US Securities and Exchange Commission (SEC) and Genesis and Gemini, a judge has dismissed the companies’ attempt to have the case thrown out. The SEC’s allegations revolve around the companies’ sale of unregistered securities through the Gemini Earn platform to retail investors. With the dismissal denied, the case will now move to court, allowing the SEC another opportunity to establish its stance on cryptocurrencies as securities.

Challenges Faced by Genesis and Gemini

Following the SEC lawsuit filed in January, which claimed that both companies engaged in selling securities through Gemini Earn, Genesis and Gemini made two unsuccessful attempts to dismiss the case. Despite requesting oral arguments and seeking to postpone discovery, the court rejected their motions. These actions indicate the escalating legal battle over the alleged violation of securities laws.

Gemini Earn and Regulatory Concerns

Gemini Earn, launched to retail customers in February 2021, offered attractive interest rates of up to 8% on cryptocurrency investments. At its peak, the platform attracted around 340,000 users and held assets worth $900 million. However, liquidity issues in November 2022 led to Genesis suspending withdrawals, triggering a public dispute between the company’s leadership.

In a recent ruling by Judge Edgardo Ramos, the SEC’s allegations regarding securities law violations through Gemini Earn were deemed plausible. The platform ceased operations in January 2023, prompting the court to allow the case to proceed. This development provides the SEC with additional leverage in shaping the regulatory landscape concerning cryptocurrencies as securities.

For more information, read the full article here.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Subscribe Today

GET EXCLUSIVE FULL ACCESS TO PREMIUM CONTENT

SUPPORT NONPROFIT JOURNALISM

EXPERT ANALYSIS OF AND EMERGING TRENDS IN CHILD WELFARE AND JUVENILE JUSTICE

TOPICAL VIDEO WEBINARS

Get unlimited access to our EXCLUSIVE Content and our archive of subscriber stories.

Exclusive content

Latest article

More article