Genesis, Gemini Must Face SEC Suit Over Crypto ‘Earn’ Program
- Judge says unregistered securities may have been sold via Earn
- Program let customers earn interest on loaned crypto assets
The US Securities and Exchange Commission headquarters in Washington, DC.
Photographer: Valerie Plesch/BloombergThis article is for subscribers only.
The Securities and Exchange Commission can proceed with its suit accusing Gemini Trust Co. and bankrupt cryptocurrency lender Genesis Global Capital of illegally offering unregistered securities through their interest-paying Gemini Earn product.
US District Judge Edgardo Ramos in New York on Wednesday denied a request to throw out civil claims the SEC filed in January 2023. The agency is seeking an order barring Gemini and Genesis from selling unregistered securities, requiring them to give up money they illegally earned from the program plus civil penalties.