Gemini Seeks Dismissal of SEC Lawsuit over Unregistered Securities


August 21, 2023


Gabriel Negrín

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Gemini, a cryptocurrency exchange, has asked a federal judge to dismiss the Securities and Exchange Commission (SEC) lawsuit alleging that it sold unregistered securities. 

The SEC accused Gemini and Genesis earlier this year of mishandling consumer funds through their Gemini Earn program and obligatory Master Digital Asset Loan Agreement (MDALA).

Gemini's attorneys argue that the SEC has not convincingly proven that these aspects qualify as securities nor that they sold or offered such securities. 

They insist on a lack of evidence, such as the actual transaction date, parties involved, and determined price. The lawyers argue that the SEC's case is unreal and disconnected from the facts offered.

Amid this predicament, Gemini is asking for an oral hearing in the hopes that the court will dismiss the lawsuit.