Investigations multiply Winter crypto continues to affect companies in the sector. Hence the case Genesis and Gemini bring a new twist with the US Department of Justice and the SEC coming into play.
Genesis x Gemini
Last November the fall of the FTX exchange platform completed the course of cryptocurrencies already battered by the collapse of Luna. Therefore, most of the cryptocurrency market has experienced a new wave of declines.
Not surprisingly, this situation has propagated to other centralized platforms.
Therefore, the trading platform Twins he had no choice but to do so block withdrawals from its “Earn” program. which offered returns of around 8%.
Basically, it’s the company Genesis which secured the loan portion of the Gemini program. In total, more than 340,000 users have had their funds frozen in the program. In all and for all, Genesis currently owes Gemini $900 million..
Second recent communications from Cameron WinklevossGemini co-founder Genesis would be to blame for blocking the funds.
Actively denounce Barry Silbert’s lack of transparency and communication in handling the situation.
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Justice is at stake
It seems that the situation is changing with the arrival of new protagonists. In fact, second information reported by our colleagues at Bloomberg, the Department of Justice and the DRY would follow this case closely.
Therefore, the American authorities would be in the process ofopen an investigation into Genesis and its parent company Digital Currency Group (DCG). These try to lighten various internal transfers occurred between the two entities.
To do this, prosecutors issued a meeting request as well as documents to both entities. For its part, the SEC is apparently conducting a similar investigation.
For its part, Digital Currency Group said it was unaware of any investigation against it.
“DCG has a strong culture of integrity and has always done business lawfully. We have no knowledge or reason to believe that there is an investigation in the Eastern District of New York into DCG. »
For its part, Genesis is somehow trying to stay the course. Indeed, the company recently decided to lay off 30% of its staff. This downsizing follows a first wave of layoffs last August.
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