Gemini and Genesis Global Capital have joined forces to request that a Securities and Exchange Commission (SEC) case be dismissed.
Gemini and Genesis Global Capital Join Forces Against SEC
According to the lawsuit, “Gemini Earn” breached securities laws by providing unregistered securities. Gemini Earn allowed users to lend crypto assets like Bitcoin to Genesis for a fee of up to 4.29%.
According to the legal documents filed by the companies, Earn is not a security. Genesis maintained that the deals amounted to loans and asked the judge to throw out the complaint or, alternatively, to overturn the SEC’s demands for a disgorgement and permanent injunction.
The SEC’s Case is Ill-Conceived
Furthermore, it was claimed that Gemini, not Genesis, was in charge of the Earn program’s customer-facing components. In a blog update directed at Earn users, Gemini, which acknowledged its function as a transfer agent for Earn, slammed the SEC case as “ill-conceived.”
Jack Baughman’s Tweets
According to Jack Baughman’s tweets, a founding partner of JFB Legal, which represents Gemini, the SEC’s complaint is only making it more difficult and problematic to recover assets from the Genesis bankruptcy to make Earn users whole. It does nothing to expedite the procedure or release assets that must be given back to Earn users.
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