Financial entity Gemini is edgewise to a potential agreement with the Securities and Exchange Commission (SEC) concerning the Earn Lending Program.
In a significant development, negotiations are underway to resolve a contentious crypto case between Gemini and Genesis, two major players in the digital asset industry. If the deal is finalised, it could bring closure to one of the most debated crypto cases in recent memory.
The saga began in November 2022 when Genesis Global Capital, a lending platform, froze withdrawals following the collapse of FTX. This move affected Gemini's Earn program, a service that promised higher returns on cryptocurrency deposits, leading to a freeze of roughly 340,000 users' assets, totalling $900 million.
The Securities and Exchange Commission (SEC) soon stepped in, suing both Gemini and Genesis, alleging that the Earn program violated investor-protection rules. Genesis responded by paying $21 million earlier this year to settle the lawsuit without admitting wrongdoing.
However, the final approval of the deal rests with the SEC. The negotiations to resolve the Earn case involve the SEC legal team, representatives from both Gemini and Genesis, and Gemini itself, which initiated the discussions with the aim to rebuild trust, distance itself from the Genesis fallout, and present a cleaner slate to investors.
In a positive sign, Gemini recently completed its long-anticipated Initial Public Offering (IPO), raising $425 million and securing a valuation of $3.3 billion. Shares of Gemini debuted at $28 and have already climbed to $32.52, indicating a positive market sentiment towards the company.
As the resolution of the Earn dispute progresses, both Gemini and Genesis are hopeful that it will mark a new chapter in their relationship and in the digital asset industry as a whole, reinforcing investor confidence and paving the way for future growth and innovation.
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