PanaTimes

Thursday, Mar 30, 2023

Winklevoss firm charged in US over crypto sales

Winklevoss firm charged in US over crypto sales

Cryptocurrency firms Gemini and Genesis have been charged by US regulators with illegally selling crypto assets to hundreds of thousands of investors.
The companies are accused of breaking the law by offering and selling the products through their joint programme, Gemini Earn, which launched in 2021.

The Securities and Exchange Commission (SEC) is in charge of the case.

Gemini was co-founded by twins Tyler and Cameron Winklevoss - known for their legal dispute with Facebook.

Tyler called the complaint "disappointing", and said his company looks forward to defending itself.

Genesis, which is owned by the crypto conglomerate Digital Currency Group, has so far not commented on the charges.


Public feud
Gary Gensler, who chairs the SEC, said: "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.

"Doing so best protects investors. It promotes trust in markets. It's not optional. It's the law."

Over the past week, a public feud has erupted between the Winklevoss brothers and Barry Silbert, the chief executive of Digital Currency Group, the parent company of Genesis.

It related to Gemini Earn, which was sold to investors as an opportunity to make up to 7.4% in interest on their crypto currency holdings.

When FTX filed for bankruptcy last November, Genesis halted customer withdrawals saying it lacked sufficient liquid assets because of the volatility of the market.

This had a knock-on impact for 340,000 customers using Gemini Earn, leaving them unable to take out their crypto assets.

Cameron Winklevoss claims Digital Currency Group owes $900m (£737m) to clients of his firm Gemini as a result and accused Mr Silbert's group of "defrauding" his customers.

A Digital Currency Group spokesperson rejected the accusations, saying they were "malicious, false and defamatory attacks" and describing them as a "desperate and unconstructive publicity stunt".

'Wild West'
The SEC regulates financial markets in the US and has enforcement powers to launch civil actions against companies it believes has breached laws.

Through its complaint, filed in the US District Court for the Southern District of New York, it is seeking to hit both companies with civil penalties and make them repay "ill-gotten gains".

Earlier this week, Mr Gensler described crypto as the "Wild West".

These latest charges come as US officials crack down on the sector after the uproar caused by the bankruptcy of FTX and Alameda Research.

Their founder, Sam Bankman-Fried, is accused of fraud after diverting funds deposited by millions of customers on his FTX platform, and transferring them without authorisation to Alameda, a hedge fund.

Mr Bankman-Fried denies the charges.
Newsletter

Related Articles

PanaTimes
Close
0:00
0:00
China and Brazil have signed a new deal that will allow them to trade in their own currencies, bypassing the US dollar as an intermediary
Elon Musk and Others Call for Pause on A.I., Citing ‘Profound Risks to Society’
Nashville style execution
“We've had evidence prior to the pandemic that masks were largely ineffective at preventing community transmission of influenza “
Former Starbucks CEO Howard Schultz:
Former Starbucks CEO Howard Schultz rejects being labeled a "billionaire"
Jamie Dimon is being deposed over JPMorgan Chase role in Epstein lawsuits
Brand new security footage has just been released to the public showing the Active shooter Audrey Elizabeth Hale drove to Covenant Church School in her Honda Fit this morning, parked, and shot her way into the building
AMERICA, 2023
U.S. charges FTX's Bankman-Fried with paying $40 million bribe
Nashville Police release bodycam footage showing officers neutralizing trans shooter of Christian school
Fallen 'Crypto King' Who Owes Millions to Investors Was Kidnapped and Tortured
Regulators blame social media for SVB's rapid collapse: 'Complete game changer'
AOC explains why she opposes banning TikTok
Singapore’s Prime Minister says China and US need to stabilize relations because world can't afford a confict between the two superpowers
Gordon Moore, a co-founder of Intel Corporation, died at 94
Powell: Silicon Valley Bank was an 'outlier'
Bordeaux town hall set on fire in France pro democracy protest
Police violence in Paris
Donald Trump arrested – Twitter goes wild with doctored pictures
NYPD is setting up barricades outside Manhattan Criminal Court ahead of Trump arrest.
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
Paris Rioting vs Macron anti democratic law
'Sexual Fantasy' Assignment At US School Outrages Parents
The US government has charged Chinese businessman Guo Wengui with leading a $1 billion fraud scheme that cheated thousands of followers out of their money.
Credit Suisse to borrow $54 billion from Swiss central bank
Russian Hackers Preparing New Cyber Assault Against Ukraine
"Will Fly Wherever International Law Allows": US Warns Russia After Drone Incident
If this was in Tehran, Moscow or Hong Kong
TRUMP: "Standing before you today, I am the only candidate who can make this promise: I will prevent World War III."
Drew Barrymore
China is calling out the US, UK, and Australia on their submarine pact, claiming they are going further down a dangerous road
A brief banking situation report
Lady bites police officer and gets instantly reaction
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
Silicon Valley Bank exec was Lehman Brothers CFO
Elon Musk Is Planning To Build A Town In Texas For His Employees
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
City officials in Berlin announced on Thursday that all swimmers at public pools will soon be allowed to swim topless
Fitness scam
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
Senator Tom Cotton: If the Mexican Government Won’t Stop Cartels from Killing Americans, Then U.S. Government Should
Banking regulators close SVB, the largest bank failure since the financial crisis
Silicon Valley Bank: Struggles Threaten Tech Startup Ecosystem"
Man’s penis amputated by mistake after he’s wrongly diagnosed with a tumour
In a major snub to Downing Street's Silicon Valley dreams, UK chip giant Arm has dealt a serious blow to the government's economic strategy by opting for a US listing
It's the question on everyone's lips: could a four-day workweek be the future of employment?
Is Gold the Ultimate Safe Haven Asset in Times of Uncertainty?
Spain officials quit over trains that were too wide for tunnels...
×