The Security & Trade Commission has sued Genesis Global Capital and Gemini Trust Co. for selling unregistered securities and high-yield offer to depositors.
Crypto exchange, Gemini partnered with crypto lender, Genesis, to in early 2021 to create a financial program called "Earn", which offered yields up to 8% for users.
The problem arises due to lack of registry and notice to the SEC on their product, which directly violates the securities policy.
According to the SEC, the two companies netted billons of dollars in crypto assets off of their product, resulting in penalties pressed against the partnership for violation of security and conduct.
The CEO of Gemini, Tyler Winklevoss, has stated on Twitter that the SEC's filing is "disappointing" and "counterproductive".
by Ryan Griffin