Post ARaUoMd2HItgl9MNVY by davidgerard@circumstances.run
 (DIR) More posts by davidgerard@circumstances.run
 (DIR) Post #ARaUoL6jvtTA2hF4Wu by davidgerard@circumstances.run
       2023-01-13T00:14:11Z
       
       0 likes, 0 repeats
       
       Hm, there's a huge conflict between the Gemini crypto exchange and the Genesis crypto investment firm over the Gemini Earn product, and what happened to the money.Fortunately, the SEC has stepped in: they're suing both of them!Press release: https://www.sec.gov/news/press-release/2023-7Docket: https://www.courtlistener.com/docket/66718824/securities-and-exchange-commission-v-gemini-trust-company-llc/Here's the complaint (PDF): https://storage.courtlistener.com/recap/gov.uscourts.nysd.592343/gov.uscourts.nysd.592343.1.0.pdfThe charge is that the Gemini Earn program was an unregistered investment opportunity - an offering of securities. This is because it was really obviously an unregistered offering of securities.Genesis had hitherto only dealt with accredited and institutional investors, which is fine. Gemini Earn gave Genesis access to money from retail - which is not, without a large amount of paperwork."Both Defendants were integral to the operation and success of the Gemini Earn program."Retail customers suffered hugely, as Gemini terminated withdrawals without warning in November - after 3AC collapsed in July, then FTX collapsed in November. The SEC has actual harm it can point at.Gemini terminated the program as of Sunday. But both companies are still in the crypto business, so the SEC wants to enjoin them from starting it again.The SEC asks that the defendants:1. Do not offer unregistered securities ever again.2. Disgorge all gains from this programme, with interest.3. Pay civil penalties.4. Whatever else the court decides.There is no settlement as yet. The SEC is getting active here.For background, see our post from ... eight hours ago https://davidgerard.co.uk/blockchain/2023/01/12/crypto-collapse-dcgs-check-kiting-comes-home-to-roost-nexo-raided-voyager-sale-to-binance-progresses-unbanking-the-banked/and in conclusion: LOLEDIT: here's Gary Gensler, chair of the SEC, explaining in very small words why the SEC is suing: https://mobile.twitter.com/GaryGensler/status/1613658338629230611
       
 (DIR) Post #ARaUoLdhxJqBgwfOuu by amerika@noagendasocial.com
       2023-01-13T03:24:20Z
       
       1 likes, 0 repeats
       
       @davidgerard Government hates the idea of competing currencies. Of course, these guys seem to be clowning it up.
       
 (DIR) Post #ARaUoMd2HItgl9MNVY by davidgerard@circumstances.run
       2023-01-13T01:00:06Z
       
       0 likes, 0 repeats
       
       Tyler Winklevoss of Gemini has responded to the SEC suit against Gemini Earn!> It’s disappointing that the @SECGov  chose to file an action today as @Gemini and other creditors are working hard together to recover funds. This action does nothing to further our efforts and help Earn users get their assets back. Their behavior is totally counterproductive.https://twitter.com/tyler/status/1613674686646484992fortunately, there's a remedy: the suit demands you give everyone's money back out of your own pockets.which you are quite capable of doing, because you still have a mountain of bitcoins.also perhaps don't break the law? i dunno, coulda helpedTyler further pleads that> the Earn program was regulated by the @NYDFS and we’ve been in discussions with the SEC about the Earn program for more than 17 months. that's great! were the SEC discussions "you really need to register this shit before we shut you down"?NYDFS doesn't authorise issuance of securities. though it can also bust you for ones that break NY law.