Tyler Winklevoss, took to Twitter to address the SEC’s lawsuit against the Gemini Exchange. In doing so, he calls it “super lame and politically motivated.”
Gemini and Genesis accused by SEC
Gemini Exchange CEO Tyler Winklevoss decided to address the lawsuit that saw the light of day on Thursday, January 12. The U.S. Securities and Exchange Commission (SEC), accused Gemini and Genesis of trading in unregistered securities, which were said to be the cryptocurrencies included in the Gemini Earn program. Winklevoss chose to respond not only to the substance of the allegations but also to the form in which they were presented.
Winklevoss’ January 13 statement reads:
“It is disappointing that the SEC has decided to file a lawsuit because Gemini and other creditors are working hard to recover funds. This action in no way supports our efforts or helps Earn users recover their assets. Their behavior is completely counterproductive.”
In further words of his statement, the exchange’s CEO points out that the Gemini Earn program is fully regulated by the New York State Department of Financial Services (NYDFS). He also pointed out that representatives of the exchange have discussed it with the SEC several times over the past 17 months. However, the commission did not make any comments as to how the program would work. That changed when Genesis decided to suspend payments.
SEC takes a circuitous route
Winklevoss points out that the way the SEC has led communications on the matter is extremely disappointing. Indeed, the continuous discussions that the exchange had with the Commission did not lead at all to direct and clear information. Instead, the SEC chose to file a lawsuit and talk to the press afterwards. To quote its words:
“Despite these ongoing discussions, the SEC decided to announce its lawsuit to the press before notifying us. Super lame. It’s unfortunate that they’re optimizing for political points instead of helping us move the case forward for 340,000 Earn users and other creditors.”
SEC on the offensive against the cryptocurrency industry
The lawsuit against Gemini and Genesis, is not the first the Securities and Exchange Commission has managed to launch so far. The legal battle between Ripple and the SEC, which has been going on for more than 2 years, still has not come to an end. Its subject is XRP and the alleged trading of this currency as an unregistered security . A few weeks ago, a similar case was lost by the issuer of the LBRY token. Meanwhile, Tyler Winklevoss assures that he will do everything to prove that Gemini’s actions are fully legal.