Gemini Belief Firm, an American cryptocurrency exchange, issued a reply memorandum in opposition to the US Securities and Alternate Fee (SEC) in an attempt to dismiss the ongoing SEC-Gemini case in the United States District Courtroom for the Southern District of New York.
Earlier this year, US regulators sued Gemini and Genesis International Capital for allegedly buying and selling unregistered securities through the Gemini Earn crypto asset loan programme. The SEC claimed that the platforms have been under review, claiming that the sale of unregistered securities has allowed the companies collect billions of dollars worth of crypto assets from customers. The case followed the traders’ complaint against Gemini and its co-founders, accusing them of fraudulent activity.
Following that, Genesis and Gemini filed a motion to dismiss the action, claiming that the Gemini Earn should not be considered a safety. Each company asked the court to dismiss the complaint on the grounds that the transactions were essentially loans. In addition, Gemini called the case “ill-conceived” in an official blog post.
On August 18, Gemini submitted a motion asking the court to dismiss the SEC‘s action against the trade, claiming that it contains vague claims and indefinite reasoning. Although Part 5 of the Securities Act is “not difficult to understand,” the platform was perplexed that the authorities failed to provide a clear declaration. “The fact that the SEC can’t resolve what’s the safety at issue simply underscores the SEC’s position,” Gemini continued.
The platform asked the court to invalidate the SEC‘s “convoluted” comments, claiming that regulators had been deafeningly silent on the crucial questions involving the sale of the presumed unregistered securities. Gemini also emphasised the key legal concepts that support its request for the action to be dismissed. According to the document, a claim must be “believable” and not based solely on “conclusory allegations.”
