NY Judge Denies Gemini and Genesis Request to Dismiss SEC Lawsuit
A judge in New York has ruled against Gemini and Genesis, two major players in the crypto ecosystem, in response to their request to dismiss a lawsuit filed by the Securities and Exchange Commission (SEC), accusing them of offering and selling unregistered securities through their Gemini Earn program.
A Crucial Decision for Crypto Regulation
The SEC’s complaint, which alleges that Gemini and Genesis violated securities laws by offering the Gemini Earn program as an unregistered investment, was deemed plausible enough by Judge Edgardo Ramos to proceed with legal proceedings.
Impacts and Implications for Users
The Gemini Earn program, launched in February 2021, promised up to 8% interest on invested cryptocurrencies. However, in November 2022, Genesis suspended withdrawals, citing withdrawal requests exceeding its available liquidity.
This suspension left the cryptocurrencies of nearly 340,000 Gemini Earn users in limbo, creating a crisis situation for many investors.
Towards a Resolution for Gemini Earn Clients
In this tumultuous context, Gemini’s co-founders, Tyler and Cameron Winklevoss, have pledged to fully refund the funds of Gemini Earn clients, estimated at approximately $1.1 billion, once the Genesis bankruptcy process is completed.
