The Securities and Exchange Commission (SEC) has just charged Genesis, a digital assets financial services firm, and Gemini, a centralized crypto exchange, for the unregistered offer and sale of securities to retail investors through the Gemini Earn crypto asset lending program.
The SEC specifically targeted Gemini’s Earn product, which promised users a healthy yield on their deposited crypto assets. Gemini deployed those assets with Genesis, which is under financial stress after FTX’s collapse left it with a hole in its balance sheet.