The Securities and Exchange Commission charged Genesis and Gemini for the unregistered offer and sale of securities to retail investors through the Gemini Earn crypto asset lending program.
SEC stated that Genesis and Gemini raised billions of dollars' worth of crypto assets from hundreds of thousands of investors through this unregistered offering. Investigations into other securities law violations and into other entities and persons relating to the alleged misconduct are ongoing.
The SEC’s complaint, filed in the U.S. District Court for the Southern District of New York, charges Genesis and Gemini with violations of Sections 5(a) and 5(c) of the Securities Act of 1933. The complaint seeks permanent injunctive relief, disgorgement of ill-gotten gains plus prejudgment interest, and civil penalties.
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