• Gemini and Genesis Global Capital seek to dismiss SEC lawsuit over defunct Earn product
• The legal counsel for Gemini insists that the product was not a security, and thus does not constitute as a security.
• Gemini and Genesis have asked a judge to dismiss the SEC complaint with prejudice.
Gemini and Genesis Seek to Dismiss SEC Lawsuit
Gemini and Genesis Global Capital are seeking to dismiss an SEC lawsuit concerning their defunct Earn product. According to developments on May 26, the legal counsel for Gemini insists that the product was not a security, and thus does not constitute as one. As such, they have asked the court to „dismiss the complaint with prejudice.“
Earn Product Details
The Earn program allowed users to earn interest on their crypto deposits as the providers re-invested those assets. Gemini said in its latest filing that this offer “was nothing more than a lending arrangement.” Though they raised numerous points, their main argument focused on the fact that the contracts were not sold on a secondary market.
The SEC claims that the contract setting up the Earn program was itself a security, which is why they filed this case against both companies. However, Gemini’s legal counsel argued otherwise – noting that even if it were considered true, then they would still need evidence of it being sold in order for it to be considered securities fraud.
As such, Gemini requested that the court „dismisses this complaint with prejudice,“ an action which has also been taken by Genesis Global Capital in their separate filing motion against them. Overall, both companies remain adamant in their stance of denying any wrongdoing regarding this matter.
In summation, both Gemini and Genesis have sought out dismissal from this case due to allegations fromthe SEC claiming their Earn product constituted as securities fraud – something which both companies wholeheartedly deny having done or being guilty of doing so whatsoever