Gemini

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<p>Gemini has responded to the US Securities and Exchange Commission (SEC) lawsuit over its Earn Product. The exchange and its partner, now-bankrupt Genesis lender, gear up for a spectacular judicial fight.</p>
<p>Gemini marked the SEC charges as “poorly conceived” and claimed that its novel Earn product, which gives dividends on clients’ crypto deposits, is not a security.</p>
<p>Genesis&nbsp;<a href="https://jfblegal.egnyte.com/dl/faUGo0LY5k" target="_blank" rel="noopener noreferrer nofollow">wades into the debate</a>&nbsp;to show support for Gemini. Together, they are asking the court to toss out the SEC’s frivolous lawsuit and all of its demands for disgorgement and a permanent injunction.</p>
<p>SEC alleges that Gemini is responsible for the Earn program’s customer-facing operations. However, Gemini says it is just a transfer agent for the Earn product.</p>
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<p>After the <a href="https://crypto.news/ftx-files-for-bankruptcy-protection-ceo-sam-bankman-fried-steps-down/" rel="noopener noreferrer nofollow">failure of FTX</a>, Genesis was also in danger of going bankrupt. Users of the Earn app have been in a bind since November 2022, when the app suddenly stopped allowing them access to their money.</p>
<p>Gemini sued Digital Currency Group (DCG), the parent firm of Genesis, to recoup $1.1 billion for 232,000 Earn members. Gemini and DCG are in heated discussions to find a solution to the problem.</p>
<p>DCG still needs to make a significant $630 million debt payment to Genesis, leaving the situation unstable. Gemini warns that DCG may have trouble making ends meet.</p>
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<h2 class="wp-block-heading" id="jfblegal-to-represent-gemini">JFBLegal to represent Gemini</h2>
<p>JFBLegal has been retained to act as legal counsel for Gemini. Their lawyer, Jack Baughman, doubts the SEC case against Gemini’s Earn product.</p>
<p>Baughman claims there was no sale of the Gemini Earn Product since it is not a security. He further notes that the SEC’s lawsuit makes it harder to retrieve users’ monies after Genesis’ bankruptcy. Gemini and its legal team intend to fight this complaint aggressively.</p>
<figure class="wp-block-image size-full"><img loading="lazy" width="1186" height="554" src="https://crypto.news/app/uploads/2023/05/Screenshot-2023-05-27-at-19.09.29.png" alt="Gemini challenges SEC in legal battle over Earn&nbsp;product - 1">
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  Source: <a href="https://twitter.com/JackBaughman27/status/1662218787465342977" target="_blank" rel="noopener noreferrer nofollow">Jack Baughman</a> on Twitter
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<p>Gemini is considering opening a shop in the UK due to growing regulatory uncertainties in its nation. This risky maneuver is part of Gemini’s ongoing effort to fight the SEC’s case.&nbsp;</p>
<div class="cn-block-related-link"><span> Read more: </span> <a href="https://crypto.news/winklevoss-twins-eye-uk-for-potential-gemini-exchange-headquarters/" rel="noopener noreferrer nofollow"> Winklevoss twins eye UK for potential Gemini exchange headquarters </a>
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Gemini challenges SEC in legal battle over Earn product

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