Crypto exchange Gemini dismisses the SEC's lawsuit against its Earn program, claiming that the regulatory agency is floundering and contradicting itself in its classification of the program as a security.
U.S. authorities are investigating claims of fraud made by Cameron Winklevoss, co-founder of crypto firm Gemini Trust Co, against the Digital Currency Group (DCG) and its founder Barry Silbert, relating to the misrepresentation of DCG's lending arm Genesis, which filed for bankruptcy in January.
Over 230,000 retail creditors who used Gemini's Earn program are expected to recover almost all of their claims under a proposed remuneration deal, which would see them receive approximately 95-110% of their claims, following the bankruptcy filing of Genesis, the company that provided the financial infrastructure for the program.
Crypto exchange Gemini has criticized a proposed bankruptcy recovery plan for Genesis, calling it misleading and deceptive, stating that Gemini Earn users will not recover the real value of the money they’re owed.
Digital asset exchange Gemini accuses Digital Currency Group of using deceptive practices to avoid repaying its obligations to the creditors of Genesis, its bankrupt crypto lending unit.
Cryptocurrency exchange Gemini has responded to allegations that the Winklevoss twins withdrew $282 million from Genesis Global Capital, stating that the funds were from its Earn users and not their own personal or corporate funds.
Ethereum co-founder Vitalik Buterin did not transfer $15 million to crypto exchange Gemini, contrary to claims made by blockchain analysts, as the transfer was actually a signing off on a transfer from a charity multisig wallet to fund a grant and the funds never left Buterin's wallet.
New York Attorney General Letitia James is suing Gemini, Genesis, and Digital Currency Group, alleging that the crypto firms defrauded over 230,000 investors, including 29,000 New Yorkers, of more than $1 billion through Gemini Earn, an investment product offering high interest rates.
Crypto firms Digital Currency Group and Gemini are accused of defrauding over 230,000 investors of $1.1 billion by lying to investors, creating false financial documents, and concealing information from creditors, according to a lawsuit filed by New York state prosecutors.
Gemini Trust Company, along with other cryptocurrency firms, has been hit with a lawsuit alleging that they collectively defrauded investors of over $1 billion, with New York Attorney General Letitia James seeking to recoup the losses and ban the companies from the financial industry in New York.
Gemini is suing Genesis over ownership of $1.6 billion in Grayscale Bitcoin Trust shares, aiming to recoup the funds to repay its Earn program clients.
Binance CEO Changpeng Zhao lost $12 billion as trading volumes declined, while Gemini sued their former partner Genesis for $1.6 billion worth of Grayscale Bitcoin Trust shares amid regulatory challenges and low trading volumes in the cryptocurrency industry.
Cryptocurrency exchange Gemini has filed a lawsuit against Genesis Global Holdco over the fate of shares worth $1.6 billion used as collateral for loans made by Gemini users, with Genesis refusing to release the proceeds from foreclosing on the collateral.
