Gemini Trust Co. and Genesis Global Capital, two cryptocurrency firms, have filed a joint request for the dismissal of the lawsuit filed against them by the Securities and Exchange Commission (SEC). The lawsuit alleged that their Earn product violated securities regulations by offering unregistered securities. The companies have argued that their Earn product, which facilitates coin lending for yield generation, should not be classified as securities. Genesis argued that the transactions were essentially loans and requested the court to dismiss the complaint or strike the SEC’s requests for a permanent injunction and disgorgement. Gemini has asserted its role as a transfer agent for Earn and argued that the SEC’s lawsuit is “ill-conceived”. Following the SEC’s lawsuit in January, Genesis filed for bankruptcy, leaving Earn users with withdrawal restrictions since mid-November. In response, Gemini filed a comprehensive claim aiming to recover over $1.1 billion in assets for the benefit of 232,000 Earn users. Gemini, Genesis and its parent company, Digital Currency Group, are currently in mediated negotiations to come up with a restructuring and settlement agreement. Gemini and other creditors are collaborating on an “amended plan of reorganization” that can be pursued independently if the mediation process fails. The objective is to ensure the optimal outcome for Earn users.
About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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