e United States Securities and Exchange Commission charged crypto companies Genesis Global Capital LLC and Gemini Trust Company LLC with the unregistered offer and sale of securities to retail investors through the Gemini Earn crypto asset lending program, APA repors citing Teletrader.
The SEC said the two firms "raised billions of dollars’ worth of crypto assets from hundreds of thousands of investors" through the scheme, which started in 2021.
However, Genesis informed investors in November 2022 that they will not be able to withdraw their assets as it lacked the required liquid assets due to the volatility in the crypto asset market. The program ended in January 2023, with the SEC stating that the Gemini Earn retail investors have still not been able to withdraw their crypto assets. "We allege that Genesis and Gemini offered unregistered securities to the public, bypassing disclosure requirements designed to protect investors," SEC Chair Gary Gensler said.