Genesis and Gemini charged by SEC with selling unregistered securities, per CNBC.
The Securities and Exchange Commission alleged in a complaint that crypto firms Gemini and Genesis offered and sold unregistered securities.
Gemini's Earn program, supported by Genesis' lending activities, met the SEC's definition by including both an investment contract and a note, SEC officials said.
Gemini, founded by the Winklevoss twins, and Genesis, owned by Barry Silbert's Digital Currency Group, have been in a battle over the fate of $900 million worth of customer funds.
"Today's charges build on previous actions to make clear to the marketplace and the investing public that crypto lending platforms and other intermediaries need to comply with our time-tested securities laws," SEC chair Gary Gensler said in a statement.
Genesis and Gemini charged by SEC with selling unregistered securities
1/12/2023