![]() In her words, they had a responsibility to their clients, especially “when you’re dealing with these sums of money, and it’s customer money, I would think the Winklevoss twins had a little bit more obligation to dig deeper to see what’s really going on.”Īs a reminder, the SEC has charged both the crypto trading platform Gemini and DCG’s subsidiary crypto lender Genesis for “the unregistered offer and sale of securities to retail investors through the Gemini Earn crypto asset lending program,” which allowed both firms to raise billions of dollars worth of crypto assets.Īt the same time, Cameron Winklevoss has publicly accused Genesis and DCG of orchestrating an alleged fraud against the crypto exchange’s users by misrepresenting Genesis’s true financial position to Gemini, leading to the loss of funds for about 340,000 customers, as Finbold reported. “Basically, Genesis has been operating in a non-solvent way since around June 2022.” “The SEC has been clear for years that something like this Earn program is a security, so it’s puzzling why they didn’t come to a resolution of this a long time ago, months and months ago.” Plenty of blame to go aroundīraganca believes “there’s a lot of blame to go around,” starting with Barry Silbert, the CEO of Genesis’s parent company Digital Currency Group (DCG), but also the Winklevoss twins, who relied on Silbert’s assurance of Genesis’s solvency without doing their due diligence. founded by billionaire Michael Novogratz, has no exposure to Genesiss lending business and Gemini Trust Co.s Earn program, it said in a statement. ![]() ![]() As she further explained, the SEC’s inaction amid talks with Gemini continued even as the crypto crash happened in November and Gemini stopped paying its customers, and “two more months went by,” until a Gemini answer in a separate case – a class action against Gemini for failure to continue payments under the Gemini Earn product – initiated action. Someone needs to step in and resolve Gemini Earns 700M retail Genesis issue In the grand scheme of things, 700M Earn exposure is nothing, like 7 hedge fund executive homes or allowances of a few Saudi princes who dont want to live in a restrictive country. While it’s not a staking program per se, Gemini Earn is a lending platform that lets users lend out their crypto holdings in exchange for interest payments. ![]()
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