SEC also highlighted that Genesis had announced in November 2022 that it would not allow Gemini Earn investors withdraw their crypto assets because it did not have sufficient liquid assets due volatility in the crypto asset markets.
The US regulator asserts that Gemini Earn is essentially an offer to sell securities and should have been registered at the Commission.
Gary Gensler is the Chair of the SEC.
We claim that Genesis and Gemini sold unregistered securities to investors, bypassing disclosure rules designed to protect investors. Today’s charges build on previous actions to make clear to the marketplace and the investing public that crypto lending platforms and other intermediaries need to comply with our time-tested securities laws. Investors are best protected by doing so. It encourages trust in markets. It’s not optional. It’s the law.
Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, said:
The recent collapse of crypto asset lending programs and the suspension of Genesis’ program underscore the critical need for platforms offering securities to retail investors to comply with the federal securities laws. As we’ve seen time and again, the failure to…