Gemini responded to a lawsuit from the US Securities and Exchange Commission (SEC) over its earnings product. The exchange and its partner, the now-bankrupt Genesis lender, are preparing for a spectacular court battle.
Gemini has called the SEC’s fee “poorly designed” and claimed that its new Earn product, which gives dividends on customers’ crypto deposits, is not a guarantee.
origin Engage in discussion To show Gemini support. Together, they ask the court to quash the SEC’s frivolous lawsuit and all of its demands for annulment and a permanent injunction.
The SEC alleges that Gemini is responsible for the customer-facing operations of the Earn program. However, Gemini says it is only a transfer agent for Earn’s product.
After the failure of FTX, Genesis was also in danger of going bankrupt. Earn app users have been on the hook since November 2022, when the app suddenly stopped allowing them access to their funds.
Gemini sued Digital Currency Group (DCG), Genesis’ parent company, to recover $1.1 billion for 232,000 Earn members. Gemini and DCG have a heated discussion to find a solution to the problem.
DCG still needs to pay off a massive $630 million debt to Genesis, which leaves the situation precarious. Gemini warns that DCG may have trouble making ends meet.
(embed) https://www.youtube.com/watch?v=k3n7FW2f9JI (/embed)
JFB is legal to represent Gemini
JFBLegal has been retained to serve as Gemini’s legal advisor. Their attorney, Jack Baughman, is suspicious of the SEC case against the Gemini’s Earn product.
Baughman claims the Gemini Earn product was not sold because it is not a warranty. He further notes that the lawsuit filed by the SEC makes it difficult to recover users’ money after the bankruptcy of Genesis. Gemini and his legal team intend to vigorously combat this complaint.
Gemini is considering opening a store in the UK due to growing regulatory uncertainties in its country. This risky maneuver is part of Gemini’s ongoing efforts to fight the SEC’s case.
