"The SEC doesn't seem to tire of hunting for new victims."
The United States (US) Securities and Exchange Commission (SEC) has charged cryptocurrency-related companies Genesis Global Capital and Gemini following unregistered securities offerings through Gemini's "Earn" program.
Earlier in December 2021, Genesis which is a subsidiary of crypto conglomerate Digital Currency Group (DCG) signed an agreement with Gemini to offer digital assets to its customers.
Through the partnership, Gemini customers were given permission to lend their digital assets to Genesis but on the condition that the company would repay the loan with interest.
Returning to the original explanation, the SEC claimed that the Gemini Earn program should be registered with the commission because the company is selling securities.
In fact, SEC Chairman Gary Gensler also mentioned that Genesis and Gemini need to protect investors from any fraud but they have offered their services without registration.
He added that the action of the charge is intended to make every company that offers crypto services aware to always comply with the SEC law.
In the meantime, DCG reportedly provided $140 million to Genesis to shore up its balance sheet, but the funds were still insufficient and the company had to suspend production.
