Tyler Winklevoss reacted to the SEC charging Gemini by calling the conduct “absolutely unproductive” in a series of tweets.
Tyler Winklevoss, co-founder of cryptocurrency exchange Gemini, has slammed the regulator that is investigating the exchange for issuing unregistered securities, calling the claims “very pathetic” and a “fabricated parking ticket.”
On Jan. 12, Winklevoss expressed his unhappiness with the Securities and Exchange Commission’s (SEC) allegations against Gemini’s “Earn” scheme, stating the regulator was “optimising for political points.”
He described the SEC’s action as “completely unhelpful,” adding that Gemini had been discussing the Earn programme with the agency for “more than 17 months.”
“They never mentioned the possibility of any enforcement action until AFTER Genesis suspended withdrawals on November 16th,” Winklevoss continued.
Earn by Gemini was introduced in February 2021 and officially operated through January 8, 2022. A partnership with Genesis, a cryptocurrency lender and Digital Currency Group (DCG) subsidiary, allows Gemini customers to earn interest by lending their cryptocurrency to the market-making firm.
Genesis stated in early November that it held approximately $175 million in the now-defunct FTX exchange. DCG transferred $140 million to the firm in an attempt to shore up its balance sheet, but Genesis blocked withdrawals on November 16 due to FTX’s insolvency.
According to open letters written by Gemini co-founder Cameron Winklevoss, Genesis owes 340,000 Gemini Earn users $900 million.
Tyler Winklevoss said Gemini would fight the unregistered security charges and “make sure this doesn’t distract us from the essential recovery work we’re undertaking.”
