SEC charges crypto firm owned by Winklevoss twins

(AFP) — U.S. financial regulators fired a fresh salvo against the cryptocurrency industry on Thursday, targeting crypto lender Genesis as well as Gemini, an exchange founded by the Winklevoss brothers.

The Securities and Exchange Commission accused the companies of promising customers yields of up to eight percent without declaring their partnership to the authorities as a lender.

Gemini was founded by Tyler and Cameron Winklevoss who were made famous as jilted investors in the movie "The Social Network" about the birth of Facebook.

"We allege that Genesis and Gemini offered unregistered securities to the public, bypassing disclosure requirements designed to protect investors," said SEC Chair Gary Gensler.

The charges come as U.S. officials crack down on the sector after the uproar caused by the bankruptcy of FTX and Alameda Research.

Their founder, Sam Bankman-Fried, is accused of fraud after diverting funds deposited by millions of customers on his FTX platform, and transferring them without authorization to Alameda, a hedge fund. 

Subscribe to Closing Arguments

Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.

Email *

Submit