Gemini And Genesis File Motion To Dismiss SEC Lawsuit Over Defunct Earn Offering

Gemini, in collaboration with Genesis Global Capital, introduced Earn, an innovative service that enables users to earn interest on their cryptocurrency deposits. Through this partnership, the providers reinvest the deposited assets, allowing users to generate passive income through the interest accrued.

Gemini’s recent filing emphasized that their offer, according to their perspective, was merely a lending arrangement. While the company presented several points, its primary argument centred around the absence of contract sales on a secondary market.

According to the legal filings submitted by the companies, they argue that Gemini Earn should not be categorized as a security.

Genesis To Court: Dismiss Complaint

Genesis specifically asserts that the transactions can be considered as loans and has requested the court to either dismiss the complaint or, as an alternative, strike the SEC’s requests for a permanent injunction and disgorgement.

Contrary to the claim, it was stated that Gemini, not Genesis, held the responsibility for the customer-facing aspects of the Earn program. Gemini openly addressed Earn users in a blog update, characterizing the SEC lawsuit as “ill-conceived” while highlighting their role as a transfer agents for the program.

In November 2022, Genesis compelled Earn to suspend all withdrawals, which led to eventual permanent closure of the service by Gemini on January 10, 2023.

Shortly thereafter, on January 12, the Securities and Exchange Commission (SEC) filed charges against both Gemini and Genesis. The SEC alleged that the companies offered unregistered securities and circumvented disclosure requirements.

Gemini Alleges $630-M Missed Payment By Genesis Parent Company

On January 19, 2023, Genesis’ lending arm filed for bankruptcy, further exacerbating the impact on Gemini’s ability to recover funds owed to former Earn users. The exchange has faced ongoing challenges in retrieving these funds.

In recent developments, Gemini revealed that Genesis’s parent company failed to fulfil a $630 million payment. Simultaneously, Gemini, along with other creditors, is actively engaged in collaborating on an “amended plan of reorganization.”

In the event that the mediation process does not yield the desired results, th

Go to Source to See Full Article
Author: anushsamal

Did you like this?
Tip BTC Newswire with Cryptocurrency