简体中文
繁體中文
English
Pусский
日本語
ภาษาไทย
Tiếng Việt
Bahasa Indonesia
Español
हिन्दी
Filippiiniläinen
Français
Deutsch
Português
Türkçe
한국어
العربية
Abstract:According to the US Assets and Exchange Commission (SEC), two crypto firms, Genesis Global Capital, LLC, and Gemini Trust Company, LLC, were accused on Thursday of unlawfully marketing securities to hundreds of thousands of investors via their crypto lending program.
According to the US Securities And Exchange Commission (SEC) on Thursday said that the two crypto firms Genesis Global Capital, LLC, and Gemini Trust Company, LLC have been charged with illegally selling securities to hundreds of thousands of investors through their crypto lending program
Genesis Global Capital, LLC, and Gemini Trust Company, LLC were accused today by the Securities and Exchange Commission of the unregistered offer and sale of securities to retail investors through the Gemini Earn crypto asset loan program. Genesis and Gemini raised billions of dollars in crypto assets from hundreds of thousands of investors via this unregistered offering. Investigations into additional suspected securities law crimes, as well as other organizations and individuals, are underway.
According to the complaint, Genesis, a subsidiary of Digital Currency Group, entered into an agreement with Gemini in December 2020 to offer Gemini customers, including retail investors in the United States, the opportunity to lend their crypto assets to Genesis in exchange for Genesis' promise to pay interest. Genesis and Gemini started providing the Gemini Earn program to retail investors in February 2021, in which Gemini Earn investors submitted their crypto assets to Genesis, with Gemini serving as an intermediary to effectuate the transaction. Gemini withheld an agency fee on the profits Genesis provided to Gemini Earn investors, which may be as high as 4.29 percent. Genesis subsequently, according to the lawsuit, used its discretion in how to utilize investors' crypto assets to generate income and pay interest to Gemini Earn investors.
According to the lawsuit, Genesis declared in November 2022 that it would not let it's Gemini Earn investors withdraw their crypto assets because Genesis had adequate liquid assets to satisfy withdrawal requests due to volatility in the crypto asset market. Genesis controlled roughly $900 million in investor assets from 340,000 Gemini Earn investors at the time. Gemini's Gemini Earn program was discontinued earlier this month. As of today, retail Gemini Earn investors are still unable to withdraw their crypto holdings.
According to the SEC's complaint, the Gemini Earn program involves an offer and sale of securities under relevant law and should have been registered with the Commission.
“We claim that Genesis and Gemini sold unregistered securities to the public, circumventing disclosure rules meant to safeguard investors,” SEC Chair Gary Gensler stated. “Today's charges expand on prior efforts to make clear to the industry and the investing public that crypto lending platforms and other intermediaries need to confirm with our time-tested securities rules. This is the greatest way to safeguard investment. It fosters market trust. It is not an option. It's the rule.”
“The recent collapse of crypto asset lending programs, as well as the suspension of Genesis' program, highlight the critical need for platforms offering securities to retail investors to comply with federal securities laws,” said Gurbir S. Grewal, Director of the Securities and Exchange Commission's Division of Enforcement.
“As we've seen again and again, the refusal to do so denies investors the fundamental information they need to make educated investment choices. Our investigations in this area are highly active and continuing, and we urge anybody with knowledge about this or other potential securities law breaches to come forward, including via our Whistleblower Program, if appropriate.”
The SEC's action, filed in the Southern District of New York, accuses Genesis and Gemini of violating Sections 5(a) and 5(c) of the Securities Act of 1933. The lawsuit seeks permanent injunctions, disgorgement of ill-gotten earnings, prejudgment interest, and civil penalties.
Jonathan Austin and Ashley Sprague of the SEC conducted the investigation, which was overseen by Deborah Tarasevich and Stacy Bogert. Edward Reilly will lead the case, with James Connor and Olivia Choe assisting.
The Retail Strategy Task Force of the SEC's Office of Investor Education and Advocacy and Enforcement earlier released an Investor Bulletin on Crypto Asset Interest-bearing Accounts. Investors may learn more about crypto assets by visiting Investor.gov.
Congress established the SEC's Whistleblower Program to offer monetary incentives for whistleblowers to come forward and report probable breaches of federal securities laws to the SEC. Under the program, qualifying whistleblowers may receive between 10% and 30% of the monetary penalty collected in SEC proceedings and comparable actions filed by other regulatory and law enforcement organizations. Whistleblowers have the option of reporting potential infractions anonymously. Employers are prohibited from retaliating against workers who assist the SEC with information regarding potential securities violations under the Program. Individuals may contact the SEC's Office of the Whistleblower at (202) 551-4790, which administers the Whistleblower Program.
Stay tuned for more crypto news.
Download and install the WikiFX App from the download link below to stay updated on the latest news, even on the go. You can also download the app from the App Store or Google Play Store.
Download link
https://www.wikifx.com/en/download.html
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
Maxim Group LLC has reached a settlement with the Financial Industry Regulatory Authority (FINRA), agreeing to pay a fine of $75,000 due to violations related to their reporting practices. This fine comes in the wake of insufficient disclosures in the firm’s public quarterly reports on the handling of customer orders in National Market System (NMS) securities.
Swissquote introduces fractional shares and crypto trading, offering affordable and flexible investment options with a new saving plan for diversified portfolios.
Elite Pro Markets is an unregulated, inaccessible Forex broker with no physical office. Rated 1.5 on WikiFX, it's a scam you should avoid.
The Financial Conduct Authority (FCA) has intensified its scrutiny of social media influencers, commonly known as "finfluencers," amid concerns that many are promoting financial products illegally.