Genesis, Gemini Must Face SEC Suit Over Crypto ‘Earn’ Program

The Securities and Exchange Commission can proceed with its suit accusing Gemini Trust Co. and bankrupt cryptocurrency lender Genesis Global Capital of illegally offering unregistered securities through their interest-paying Gemini Earn product.

US District Judge Edgardo Ramos in New York on Wednesday denied a request to throw out civil claims the SEC filed in January 2023. The agency is seeking an order barring Gemini and Genesis from selling unregistered securities, requiring them to give up money they illegally earned from the program plus civil penalties.

Earn allowed customers to lend their cryptocurrency to collect interest. The defendants argue that the ...