The U.S. SEC accuses Genesis and Gemini of offering and selling unregistered securities to retail investors

According to ChainCatcher, The Block reported that the U.S. Securities and Exchange Commission (SEC) has charged Genesis Global Capital and Gemini Trust Company with offering and selling unregistered securities to retail investors through a crypto lending program.

The SEC stated that Genesis entered into an agreement with Gemini in December 2020 and began offering the Gemini Earn program to retail investors in February 2021, allowing Gemini customers to earn interest by lending their cryptocurrency to Genesis. Gemini also deducted a commission fee from the returns paid to Gemini Earn investors by Genesis, sometimes as high as 4.29%. An SEC official stated that Genesis and Gemini participated in the issuance and sale of securities without registration, and both companies bear responsibility. (source link)