Winklevoss expressed his dissatisfaction with the Securities and Exchange Commission’s (SEC) accusations regarding Gemini’s “Earn” program in a string of tweets on January 12 and said the regulator was “optimizing for political points.”
He stated that Gemini had been discussing the Earn program with the regulator “for more than 17 months” and that the SEC’s action was “absolutely unproductive.”
“They never raised the prospect of any enforcement action until AFTER Genesis paused withdrawals on November 16th,” Winklevoss added.
The Gemini Earn product went live in February 2021 and operated formally until January 8th. Users of Gemini can earn yield by lending their cryptocurrency to the market-making company according to an agreement with the cryptocurrency lender and Digital Currency Group (DCG) subsidiary Genesis.
Genesis disclosed that it had about $175 million trapped in the now-defunct FTX
In November, Genesis disclosed that it had about $175 million trapped in the now-defunct FTX exchange. DCG handed the company $140 million in an effort to strengthen its balance sheet, but by Nov. 16, Genesis had stopped withdrawals, citing FTX’s insolvency as the reason.
Cameron Winklevoss, the co-founder of Gemini, claims in open letters that Genesis owes 340,000 Gemini Earn users $900 million.
Gemini will defend itself against the allegations of an unregistered security, according to Tyler Winklevoss, and will “make sure this doesn’t distract us from the essential recovery work we are undertaking.”
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Original post: https://news.coincu.com/160351-winklevoss-calls-secs-claims-against-gemini/
