Categories: Crypto

Gemini Exchange Asks Court to Dismiss SEC Lawsuit Against Gemini Earn Program

Cryptocurrency exchange Gemini has asked a federal judge to dismiss an SEC lawsuit accusing the exchange of selling unregistered securities under the Gemini Earn program.

Gemini's lawyers rejected the SEC's argument that the Gemini Earn interest program and the Digital Asset Lending Agreement (MDALA) should qualify as sales to customers. In January, the department asked the court to impose an injunction on Gemini Earn, saying that through the program, Genesis and the Gemini platform attracted billions of dollars in crypto assets from 340,000 retail investors.

Lawyers left open the question that Gemini Earn and MDALA might be related to the securities, but denied the SEC's claim that they were sold to clients as unregistered securities. The lawyers explained that the loan agreements were not offered or sold to clients. Receiving interest on invested crypto assets is not considered a sale of securities, since we are talking about borrowed assets that can be returned upon request of the client. Therefore, the SEC's arguments are inconsistent, Gemini said in its motion.

“Even a child playing at a lemonade stand knows that when something is sold, ownership of the thing—in this case the lemonade—passes from the seller to the buyer in exchange for money. Even if MDALA is related to securities, it is not a sale,” the lawyers wrote.

Recall that in July, Gemini co-founder Cameron Winklevoss sued Digital Currency Group (DCG) and its leader Barry Silbert for failure to pay $1.46 billion to creditors about the Gemini Earn program.

legenda

Recent Posts

During a full-scale war, the Ukrainian Student League collaborated with the Russian oligarch’s foundation

In 2022, the Ukrainian Student League (USL) collaborated with the Rassvet Foundation, founded by Russian oligarch Mikhail…

3 weeks ago

Employees of a fraudulent call center network detained in Russia: details

In Russia, managers and employees of a “branch” of an international network of call centers were exposed. This was reported by RBC-Ukraine...

1 month ago

Why did the judicial “under-reformer” Mikhail Zhernakov decide to criticize the legal profession?

Mikhail Zhernakov is one of the most public figures in the field of judicial reform in Ukraine, which...

1 month ago

The pointless “book club” of the Ministry of Culture

The ministry spent tens of millions on printing unnecessary books in “its” publishing houses. The Ministry of Culture during...

2 months ago

More than two state budgets. How money is withdrawn from Ukraine

Over more than 30 years of independence, at least $100 billion has been withdrawn from Ukraine abroad,...

2 months ago

“Decided” by the tax office Andrei Gmyrin organized a business with Russians and relatives of judges

Remember the former head of the Tax Service of Ukraine, Roman Nasirov, who wrapped himself in a blanket, pretending to be seriously ill in...

2 months ago

This website uses cookies.