A lawsuit filed late Thursday has it that the U.S. Securities and Exchange Commission (SEC) has alleged that crypto exchange Gemini and crypto lender Genesis Global Capital sold unregistered securities.
The SEC launched a probe into Gemini Earn, the yield-bearing crypto product, accusing it of being an unregistered security.
Gemini generated yield on billions of dollars in crypto by loaning deposits to Genesis, which loaned them out again.
The lawsuit is the latest twist in the CEO battle between the Winklevoss twins of Gemini against Barry Silbert, head of DCG.
The Winklevoss twins have accused Silbert of fraud in his company’s management of Genesis while Silbert calls the brothers’ accusations a publicity stunt.