{"id":12111,"date":"2023-05-27T07:31:08","date_gmt":"2023-05-27T07:31:08","guid":{"rendered":"https:\/\/www.cryptoheretostay.com\/?p=12111"},"modified":"2023-05-27T07:31:08","modified_gmt":"2023-05-27T07:31:08","slug":"gemini-and-genesis-seek-to-dismiss-sec-lawsuit-over-defunct-earn-product","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=12111","title":{"rendered":"Gemini and Genesis seek to dismiss SEC lawsuit over defunct Earn product"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p>Gemini and Genesis have asked a judge to dismiss an SEC lawsuit concerning its Earn product, according to developments on May 26.<\/p>\n<h2>Genesis says Earn wasn&#8217;t a security<\/h2>\n<p>Jack Baughman, a lawyer for Gemini, wrote:<\/p>\n<p>&#8220;The SEC claims that the contract setting up the Earn program was itself a security. Even if that were right &#8230; the SEC would then have to show that the contract was sold. That never happened.&#8221;<\/p>\n<p>Gemini offered Earn in partnership with Genesis Global Capital. This allowed users to earn interest on their crypto deposits as the providers re-invested those assets.<\/p>\n<p>Gemini said in its latest filing that this offer &#8220;was nothing more than a lending arrangement.&#8221; Though the company raised numerous points, its main argument focused on the fact that the contracts were not sold on a secondary market.<\/p>\n<p>It said that, as a result, the lending agreements it engaged in do not constitute securities. It asked the court to &#8220;dismiss the complaint with prejudice.&#8221;<\/p>\n<p>Baughman noted that Genesis has filed a similar motion to dismiss the case and said that Gemini is &#8220;happy to join this argument.&#8221;<\/p>\n<h2>Earn was halted in November<\/h2>\n<p>Genesis forced Earn to halt withdrawals in November 2022. Gemini then permanently closed the service on Jan. 10, 2023.<\/p>\n<p>The SEC filed charges against Gemini and Genesis on Jan. 12, at which time it alleged that the firms offered unregistered securities and bypassed disclosure requirements.<\/p>\n<p>Genesis&#8217; lending arm additionally filed for bankruptcy on January 19, 2023. This has continually affected Gemini&#8217;s ability to obtain the funds that are owed to former Earn users. Recently, Gemini said that Genesis&#8217;s parent company missed a $630 million payment.<\/p>\n<p>Baughman acknowledged those issues by noting that Genesis&#8217; bankruptcy is &#8220;dragging on.&#8221; He said that the SEC case will only make compensating Earn users more difficult.<\/p>\n<p>Earn users were owed up to $900 million in January.<\/p>\n<p>The post Gemini and Genesis seek to dismiss SEC lawsuit over defunct Earn product appeared first on CryptoSlate.<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cryptoslate.com\/gemini-and-genesis-seek-to-dismiss-sec-lawsuit-over-defunct-earn-product\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gemini and Genesis have asked a judge to dismiss an SEC lawsuit concerning its Earn product, according to developments on May 26. Genesis says Earn wasn&#8217;t a security Jack Baughman, a lawyer for Gemini, wrote: &#8220;The SEC claims that the contract setting up the Earn program was itself a security. Even if that were right [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":12112,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[3],"tags":[],"class_list":["post-12111","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/12111","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12111"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/12111\/revisions"}],"predecessor-version":[{"id":12113,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/12111\/revisions\/12113"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/12112"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12111"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12111"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12111"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}