Gemini’s Stance on SEC’s Allegations
Gemini stands firm in its response to the US Securities and Exchange Commission (SEC) lawsuit over its Earn Product. Labeling the SEC’s charges as “poorly conceived,” the crypto exchange insists that the Earn product, which yields dividends on clients’ crypto deposits, does not qualify as a security.
Genesis Supports Gemini Amid Bankruptcy
Despite its precarious financial situation, Genesis wades into the debate in a show of support for Gemini. In a united front against the SEC, both entities are urging the court to dismiss what they call a frivolous lawsuit, along with all demands for disgorgement and a permanent injunction.
Gemini and DCG in Discussion Over Earn App Issues
With Genesis teetering on the edge of bankruptcy after the FTX failure, the Earn app users found themselves in a tough spot. Since November 2022, the app has been restricting access to their money, causing significant distress.
In a bid to recoup $1.1 billion for the Earn product’s users, Gemini sued Digital Currency Group (DCG), Genesis’ parent company. Currently, heated discussions between Gemini and DCG are ongoing to resolve the problem.
JFBLegal Steps In to Represent Gemini
Gemini has brought in JFBLegal to act as its legal counsel in this high-profile case. Their attorney, Jack Baughman, expresses skepticism about the SEC’s case, insisting that the Earn product was never sold as a security.
Baughman further states that the SEC’s lawsuit only complicates the recovery of users’ funds following Genesis’ bankruptcy. Regardless, Gemini and its legal team are prepared to robustly defend against these allegations.
Gemini’s Contemplated UK Expansion Amid Regulatory Uncertainty
In the face of growing regulatory uncertainties in the US, Gemini is considering extending its operations to the UK. This strategic yet risky move demonstrates Gemini’s tenacity in fighting the SEC’s case.
The situation remains fluid as the crypto industry keenly observes this legal showdown between Gemini and the SEC.
