| The U.S.-based crypto exchange Gemini and the bankrupt crypto lender Genesis have requested the dismissal of a lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Gemini's lending service, Earn. In a lawsuit filed in January, the SEC claimed that the product offered unregistered securities, suing both companies. - Gemini's
Earn service, which was halted in January, allowed users to lend their
coins to generate a yield in collaboration with Genesis.
- In
the recent legal request, Genesis said the transactions on Earn were,
in effect, loans and did not run the customer-facing operations in the
service.
- On the other hand, Gemini defined the SEC's lawsuit as ill-conceived, adding that it was just a transfer agent for Earn.
- Gemini also submitted a master claim to reimburse 232,000 Earn customers more than $1.1B in assets.
- The
conflict with the SEC and the U.S. regulators' increased scrutiny over
the crypto industry forced Gemini, like many other crypto-related
companies, to intensify its expansion plans to consolidate its roots
outside its native.
- The company's recent global expansion efforts include a European base in Ireland, a new engineering hub in India, the extension of the business team in Singapore, the launch of a crypto derivatives platform that only caters to users outside the U.S., and a meeting with the U.K. authorities to discuss a potential move to London.
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