According to the former head of the SEC, US regulators delayed the case against Gemini & Genesis even after learning about its problems since 2022.
On January 12, the United States Securities and Exchange Commission (SEC) filed a lawsuit against digital asset management group Genesis and crypto exchange Gemini, founded by the Winklevoss twins. Incredibly, however, former SEC enforcement director Lisa Braganza says that the financial regulator closely monitored the stock “and allowed it to continue.”
SEC Knows Since 2022
In a TV interview on CNBC’s Squawk Box episode, Lisa Braganza, former Chicago SEC Law Enforcement Branch Chief, spoke about the SEC’s new charges against Genesis & Gemini and the circumstances surrounding it. According to Lisa, regulators have been investigating Gemini’s crypto lending products for a long time, but still allow the fraud to continue.
He went on to explain that the lack of SEC activity and negotiations with Gemini continued even after the crypto market crashed in November 2022 and Gemini stopped paying its clients. In addition, he insists that “two more months have passed” before any action is taken because Gemini has filed a response to a separate lawsuit, which is a class action lawsuit against Gemini for not pursuing payments as part of the Earn product. Unique.
The Former Head of The Branch Was Quoted As Saying:
The SEC has been clear for years that something like this Access program is a security, so it’s curious why they didn’t come up with a long-term solution, months and months ago. Genesis-Gemini Journal
Braganza thinks there is a lot of blame game, starting with Barry Silbert, CEO of Genesis’ parent company, Digital Currency Group (DCG), but also the Winklevoss twins; who relied on Silbert’s confidence in Genesis’ solvency without first conducting their own investigation.
Another thing that confused the former head of the SEC is that the authorities have known since about June 2022 that the cryptocurrency broker Genesis was conducting business in the United States in an unreasonable manner. Also, he says that these crypto companies owe money to their customers, especially when they deal with large amounts of money, especially their customers’ money.