Bankrupt Crypto Lender Genesis Wants SEC Lawsuit To Be Dropped

Genesis, a failed crypto lender, wants the Securities and Exchange Commission's lawsuit against it from January to be thrown out. The SEC said that the platform's famous "Earn" service sold unregistered securities. Genesis filed for Chapter 11 bankruptcy in January of this year. This was partly because of the fall of FTX in November of last year.

Gemini has defended itself by saying that its Earn service gave out loans, not stocks. In January, the founder of the company, Tyler Winklevoss, called the charge a "parking ticket" and said he was ready to fight it.

The Winklevoss twins aren't the only ones who think SEC chair Gary Gensler's method to regulating cryptocurrencies is too strict. Last month, Gensler went before the House Financial Services Committee to explain how he plans to regulate cryptocurrencies. Some republican lawmakers are working on plans to get rid of him as head of the regulatory body.

Many people in the US say that Gensler's method makes it harder for people to invest in the crypto sector. This is because regulation is a big part of how crypto prices will change in the future. Coinbase has also said that the SEC doesn't give clear instructions, so maybe these complaints will help Genesis get its case dropped.

(About Genesis)

Genesis was a well-known cryptocurrency company that Brendan O'Connor and Marco Streng started in 2013. Before it went bankrupt in January 2023, Genesis was one of the most important places to borrow digital assets. The cryptocurrency lending platform was one of the most important things Genesis had to give. People and organisations could borrow and lend cryptocurrencies like Bitcoin, Ethereum, and other altcoins through this platform. The lending service let people make interest on their crypto holdings or use borrowed money for different things, like trading on margin or investing in capital. But the service still owes more than $3.4 billion to just its 50 biggest creditors.