https://www.bbc.com/news/technology-64265440 BBC Homepage * Skip to content * Accessibility Help * Your account * Home * News * Sport * Reel * Worklife * Travel * Future * More menu More menu Search BBC * Home * News * Sport * Reel * Worklife * Travel * Future * Culture * Music * TV * Weather * Sounds Close menu BBC News Menu * Home * War in Ukraine * Coronavirus * Climate * Video * World * US & Canada * UK * Business * Tech More * Science * Stories * Entertainment & Arts * Health * In Pictures * Reality Check * World News TV * Newsbeat * Long Reads * Tech Winklevoss firm charged in US over crypto sales * Published 1 day ago Share close panel Share page Copy link About sharing Tyler Winklevoss (l) and his twin brother CameronImage source, Getty Images Image caption, Tyler Winklevoss (l) and his twin brother Cameron By Mike Farrell Technology reporter 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." * FTX: Collapsed crypto giant recovers over $5bn of assets * UK Treasury considers plan for digital pound * YouTube star Logan Paul apologises for CryptoZoo project failure 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 (PS737m) 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. More on this story * After the FTX chaos, is crypto down and out? + 16 December 2022 boxer lying on his back * Collapsed crypto giant FTX recovers $5bn of assets + 2 days ago Former FTX Chief Executive Sam Bankman-Fried leaves following a hearing at Manhattan federal court in New York City, US on 3 January 2023 * UK investor reported losing PS1m in FTX collapse + 3 days ago FTX logo on a phone screen * FTX founder pleads not guilty to fraud + 3 January Sam Bankman-Fried * Bankman-Fried: I hope to make money to pay people back + 10 December 2022 Sam Bankman-Fried * Winklevoss twins end Facebook row + 23 June 2011 Related Topics * United States * Cryptocurrency * US Securities and Exchange Commisson Top Stories * Russia fires new waves of missiles across Ukraine + Published 25 minutes ago * Widespread outrage after British-Iranian executed + Published 1 hour ago * More classified material found at Biden's home + Published 1 hour ago Features * Christian missionaries target the birthplace of Buddha Worshipper * Canada wrestles with euthanasia for the mentally ill Madeleine Li * New Zealand egg shortage threatens pavlova A pavlova with cherries on top is seen on a plate held by a woman * * Miraculous return of Indian fishermen lost at sea Fishermen * The brave man who took on a tyrant and made history Ebrima Solo Sandeng * California's devastating storm in maps and charts Man carries son away from floodwaters in Gilroy, California * China eyes life beyond Covid despite high infections family in Zhejiang * Does easing US inflation point the way for the world? a person looking at a receipt * A life shadowed by family deaths and famous marriages Lisa Marie and Elvis Presley Elsewhere on the BBC * Britain's lost and legendary 'Area 51' old building and light house * The axed workers posting epic goodbyes Woman on computer * The skiers dedicated to alpine warfare Overlooking mountains Most Read 1. 1 More classified material found at Biden's home 2. 2 Police seize luxury cars from Andrew Tate's property 3. 3 Russia fires new waves of missiles across Ukraine 4. 4 Widespread outrage after British-Iranian executed 5. 5 Family would never forgive me if I told all - Harry 6. 6 Lisa Marie to be buried next to son at Graceland 7. 7 Canada wrestles with euthanasia for the mentally ill 8. 8 Girl, 7, injured in shooting near church 9. 9 Christian missionaries target the birthplace of Buddha 10. 10 Rocker John Fogerty wins back rights to his music BBC News Services * On your mobile * On smart speakers * Get news alerts * Contact BBC News * Home * News * Sport * Reel * Worklife * Travel * Future * Culture * Music * TV * Weather * Sounds * Terms of Use * About the BBC * Privacy Policy * Cookies * Accessibility Help * Parental Guidance * Contact the BBC * Get Personalised Newsletters * Why you can trust the BBC * Advertise with us * AdChoices / Do Not Sell My Info (c) 2023 BBC. 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