Maybe the issue was something else altogether. Maybe the SEC staff, in its customary fashion, declined to give Gemini any guidance and instead just kept throwing up roadblocks to registration.
Maybe Gemini kept repeating the same arguments as to why it did not need to register. So what happened How much was there to discuss? Why did the SEC wait until after Genesis suspended customer withdrawals to bring its case? 4 On the day the SEC filed, Tyler Winklevoss took to Twitter to call the SEC’s case “Super lame” and a “manufactured parking ticket,” noting that Gemini had been in discussions with the SEC about the Earn program for more than 17 months.Īs evidenced by the (IMO clean, well-written) complaint, the transactions at issue were not terribly complicated. More than once, SEC Chair Gary Gensler has made public remarks urging crypto market intermediaries to “ come in, talk to us, and register.” 3 It appears Gemini tried to do just that. The SEC’s complaint, filed in federal court in lower Manhattan, seeks permanent injunctive relief, disgorgement of the companies’ profits, and civil penalties. 2 Genesis sent the promised interest payments to Gemini, which deducted its fee, then passed the remainder along to Earn customers. Customers were promised varying interest rates to lend their assets to Genesis which, among other things, then lent the assets to institutional borrowers. Use common sense.On January 12, 2023, the Securities and Exchange Commission (SEC) charged Genesis Global Capital LLC (Genesis) and Gemini 1 Trust Company, LLC (Gemini) for the unregistered offer and sale of securities through the Gemini Earn program.Īccording to the SEC, between February 2021 and November 2022, approximately 340,000 retail investors used tokens from their Gemini accounts to invest in the Gemini Earn program. I know everyone is angry but you guys are blaming and focusing on the wrong companies. Plain and simple.įTX is a different story, they legit lied and committed fraud. They protected themselves pretty well with disclosing the risks and what we, the consumers, we're getting into. Now if Gemini lied, committed fraud, promoted false advertising, THEN YES, SUE THE HELL OUT OF THEM.
That's like saying, you buy cigarettes at a store, get cancer, then blame the store for selling you said cigarettes- you should be blaming the cigarette companies for making them in the first place! Even then, you can't blame the cigarette companies because they listed on the box that it can cause cancer! No one forced you to buy the cigarettes, just like no one forced you to use Earn. Gemini never hid behind anything! It was all present and available information for everyone to read and see! It's up to the consumers to do your own DD. I'm not defending Gemini, I'm just speaking logic.
If earn gets redeemed next week it would be a miracle and I would go by myself a lotto ticket immediately. Then I later learned they also engaged restructuring counsel and advisor. I want my earn back as much as anyone but after I heard Genesis tried to get $1B loan and couldn’t last weekend I just knew it’s way more serious than they’ve been letting on Twitter. Genesis lending is a separate entity so they can kill that without affecting their OTC business. The cash flow off it is probably less than $300M a year now? So how are they gonna afford another $1B of liabilities? And if they can’t afford it, who is going to lend them in this market after FTX with $300M cash flow and a preexisting $1B liability from 3AC? It would be over $2B of liabilities for a company whose sole asset is crypto in a macro bear mkt with just $300M cash flow at best.Īlso, Genesis OTC business is Genesis trading. They don’t own all $10B, that’s trust money for their own clients. Their entire asset holding is basically GBTC which is losing value as we speak and valued at $10B. How will the parent company afford it? They already handed over $1B to Genesis for 3AC.
0 kommentar(er)
