Gemini

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<p class="is-style-lead">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" 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><div class="cn-block-related-link"><span class="cn-block-related-link__prefix"> You might also like: </span><a href="https://crypto.news/gemini-chooses-ireland-as-its-hub-amid-us-crypto-turbulence/" class="cn-block-related-link__link" rel="noopener noreferrer nofollow"> Gemini chooses Ireland as its hub amid US crypto turbulence </a></div><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><figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper"><iframe title="SEC charges two crypto funds for unregistered offer, sale of securities" src="https://www.youtube.com/embed/k3n7FW2f9JI?feature=oembed"></iframe></div></figure><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 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" class="wp-image-14162244"><figcaption class="wp-element-caption"> Source: <a href="https://twitter.com/JackBaughman27/status/1662218787465342977" rel="noopener noreferrer nofollow">Jack Baughman</a> on Twitter </figcaption></figure><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 class="cn-block-related-link__prefix"> Read more: </span><a href="https://crypto.news/winklevoss-twins-eye-uk-for-potential-gemini-exchange-headquarters/" class="cn-block-related-link__link" rel="noopener noreferrer nofollow"> Winklevoss twins eye UK for potential Gemini exchange headquarters </a></div>

Gemini challenges SEC in legal battle over Earn product

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