The U.S. securities regulator alleges Gemini’s Earn program, in which the Winklevoss twins’ company sold billions of dollars worth of crypto assets to retail investors and loaned them to Barry Silbert’s Genesis to earn interest, violated securities law. (The Logic)
Talking point: The SEC is taking aim at the two crypto heavyweights with the lawsuit, part of its ongoing crackdown on the sector. The charges add to Genesis and Gemini’s troubles from the fallout of the FTX collapse. The Canadian crypto sector is keeping close tabs on Gemini, as the New York City-based company is the custodian for hundreds of millions of dollars’ worth of Canadian companies’ crypto investments. The Winklevoss twins and Silbert, founder of the crypto conglomerate Digital Currency Group, were already engaged in high-profile mudslinging over the problems with Gemini Earn before the SEC’s charges.