Compare with different regulatory event:
On 12 January 2023, the US Securities and Exchange Commission (SEC) filed a complaint against Genesis Global Capital and Gemini Trust Company under the Southern District Court of New York against Genesis and Gemini for an alleged unregistered offer and sale of securities. The SEC claims that Genesis and Gemini violated Sections 5a and c of the 1933 Securities Act. According to the complaint, Genesis and Gemini, through their Earn crypto asset lending programme, collected billions of dollars worth of crypto assets from investors since December 2020. Under the programme, Genesis offered Gemini customers the option to loan their crypto assets to Genesis in exchange for paid interest, and Gemini benefited from an agent fee on the returns. The SEC stated that Genesis in November 2022 announced it would not allow its Gemini Earn investors to withdraw their crypto assets due to the lack of sufficient liquid assets to satisfy the withdrawal requests. The SEC argued that the Gemini Earn program represents an offer and sale of securities, which requires prior registration with the Commission. The filed complaint asks the court for injunctive relief, civil penalties and repayment of ill-gotten gains.
Original source