SEC-Gemini Exchange Settlement Could Be Imminent According to Sources
Winklevoss's Gemini Seeking a Potential Settlement with the SEC
Looks like the crypto exchange Gemini, founded by the Winklevoss twins, is attempting to smooth things over with the U.S. Securities and Exchange Commission (SEC) regarding a lawsuit related to their now-defunct crypto lending program. It seems they're collaborating with the SEC to halt legal proceedings while they consider a possible settlement.
The beef between Gemini and the SEC started in January 2023 when ol' SEC Jimbo filed a lawsuit against not just Gemini but Genesis Global Capital, too. They accused the pair of causing a ruckus by violating securities laws via the Gemini Earn program. This program let users park their crypto and collect interest – kinda like a bank, but for crypto nerds.
This dry spell for Genesis began in November 2022 when they blocked customer withdrawals. Around $900 million in user assets became as elusive as Bigfoot's cryptid footprints since then.
Now, both parties have dropped a joint letter on the U.S. District Court for the Southern District of New York asking Judge Ramos to give 'em a 60-day break. The idea here is to have a chat about potential deals and agreements.
The letter reads: "The parties submit that it's in each of their interests to put this matter on hold while they ponder a possible resolution, and nobody'd be left high and dry by this pause. A halt in these proceedings is in the court's and the public's interest, considering a resolution would conserve judicial resources."
Gemini Earn, once touted as a way to juice up your crypto with juicy returns, has found itself under the regulatory microscope after the fall of other crypto lending platforms raised questions about investor protection and adherence to regulations. The Genesis moratorium on withdrawals in late 2022 was one of several cogs in the legal machine that set off lawsuits and probes throughout the crypto world.
BetUS Get 125% / $2,500 on 1st deposit! Visit Site
Gemini and the SEC also threw together a plan to check in with the court after that 60-day break.
"The parties respectfully request that the Court grant this joint request for a 60-day stay. The parties suggest that they'll report back to the court within 60 days of the stay being approved."
The present situation shows that Gemini, and possibly the SEC, are working towards a possible resolution of the lawsuit, which accuses Gemini of offering unregistered securities through the Gemini Earn program. Reports suggest that the SEC's newfound friendliness towards crypto regulation might play a role.
- The Winklevoss-led Gemini is discussing a potential settlement with the SEC over lawsuits regarding the Gemini Earn program, a cryptocurrency lending program that violated securities laws.
- In 2023, the SEC filed lawsuits against both Gemini and Genesis Global Capital, accusing them of causing turmoil in the financial and technology business sectors.
- The SEC and Gemini have requested a 60-day break from the U.S. District Court for the Southern District of New York to discuss possible deals and agreements.
- After the 60-day break, Gemini and the SEC will report back to the court regarding the progress made in the resolution of the lawsuit accusing Gemini of offering unregistered securities.
