Winklevoss Twins Stand Firm: SEC’s Charges Against Gemini Called a ‘Misguided Attack’

  • In some of his tweets, Tyler Winklevoss retaliated against the SEC’s allegations against Gemini, calling the move “absolutely counterproductive.”

The Winklevoss twins have criticized the regulator, accusing the exchange of issuing unregistered securities, calling the accusations “super lame” and a “manufactured parking ticket.” The twins are well-known for their engagement in the early days of Facebook and subsequent investments in cryptocurrency.

Winklevoss expressed his dissatisfaction with the Securities and Exchange Commission’s (SEC) accusations regarding Gemini’s “Earn” program in a string of tweets on January 12 and said the regulator was optimizing for political points.

He claimed that Gemini had been discussing the Earn program with the regulator for more than 17 months and referred to the SEC’s action as unproductive.

Winklevoss stated, “They never mentioned the possibility of any enforcement action until Genesis suspended withdrawals on November 16.”

The Gemini Earn product was officially operational from February 2021 to January 8. Users of Gemini could earn yields by lending their cryptocurrency to the market-making company, according to an agreement with the cryptocurrency lender and Digital Currency Group (DCG) subsidiary Genesis.

In November, Genesis disclosed that about $175 million was trapped in the defunct FTX exchange. DCG handed the company $140 million to strengthen its balance sheet, but by November 16, Genesis had stopped withdrawals, citing FTX’s insolvency as the reason.

Cameron Winklevoss, the co-founder of Gemini, claims in open letters that Genesis owes 340,000 Gemini Earn users $900 million.

Gemini President Cameron Winklevoss attacked Genesis’s parent company Digital Currency Group when the Gemini Earn program was discontinued. He claimed that Gemini’s former lending partner had defrauded thousands of Earn users and misled them about DCG’s stability. Barry Silbert, the CEO of DCG, was also called for to be fired by Winklevoss. Silbert refuted Winklevoss’ assertion that the money was shared across DCG companies.

According to an SEC official, Genesis and Gemini were partners in an activity involving the offer and sale of securities without registration. The official stated that both are culpable, in addition to the fact that Genesis was the provider.

Given that Gemini and other creditors are attempting to recoup funds, Winklevoss expressed his disappointment with the SEC’s decision. Tyler Winklevoss tweeted, “This action does nothing to enhance our efforts and help Earn users get their assets back.”Their actions are wholly ineffective.”Winklevoss added that Gemini would fight the allegations of an unregistered security and would ensure that this did not distract them from the crucial recovery work they are doing.

The twins of Winklevoss have responded to the SEC’s accusations in a way that makes it apparent they want to refute the accusations and clear their name. The verdict, in this case, could greatly affect how crypto exchanges and companies are regulated. The Winklevoss twins have consistently highlighted their transparency, which is why they consider the SEC’s allegations to be “very lame, manufactured parking tickets.”