Gemini, in collaboration with Genesis Global Capital, introduced Earn, an innovative service that enables users to earn interest on their cryptocurrency deposits. Through this partnership, the providers reinvest the deposited assets, allowing users to generate passive income through the interest accrued.
Gemini’s recent filing emphasized that their offer, according to their perspective, was merely a lending arrangement. While the company presented several points, its primary argument centred around the absence of contract sales on a secondary market.
According to the legal filings submitted by the companies, they argue that Gemini Earn should not be categorized as a security.
Genesis To Court: Dismiss Complaint
Genesis specifically asserts that the transactions can be considered as loans and has requested the court to either dismiss the complaint or, as an alternative, strike the SEC’s requests for a permanent injunction and disgorgement.
Contrary to the claim, it was stated that Gemini, not Genesis, held the responsibility for the customer-facing aspects of the Earn program. Gemini openly addressed Earn users in a blog update, characterizing the SEC lawsuit as “ill-conceived” while highlighting their role as a transfer agents for the program.
In November 2022, Genesis compelled Earn to suspend all…
