Judge Rules Against Gemini, Genesis Motion to Dismiss SEC Case Against Earn Product
A New York judge has denied motions to dismiss the U.S. Securities and Exchange Commission (SEC) case against crypto lender Genesis and crypto exchange Gemini. The SEC alleges that the two firms violated securities laws by offering and selling unregistered securities to retail investors through the now-defunct Gemini Earn program. Gemini Earn, which offered up to 8% interest on crypto tokens, had around 340,000 retail users and $900 million in assets before Genesis halted withdrawals in November 2022. Gemini Earn was closed in January 2023, and the SEC filed charges against both companies. Both companies filed motions to dismiss the case in May 2023, which were denied. Gemini's co-founders have pledged to return all of Gemini Earn customers' funds, worth about $1.1 billion, after Genesis's bankruptcy case concludes.
