Winklevoss Twins’ Crypto Firm Charged With Hawking Illegal Securities

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A company owned by Cameron and Tyler Winklevoss was one of two cryptocurrency firms charged with offering unregistered securities by the Securities and Exchange Commission on Thursday.

Gemini, the Winklevoss’ crypto exchange, and Genesis, a broker under the heavyweight conglomerate Digital Currency Group, together raised “billions of dollars’ worth of crypto assets from hundreds of thousands of investors” for Gemini Earn, a program that promised investors high interest on the assets they lent to Genesis.

Earn was billed to customers as a way to passively grow their crypto holdings, with advertised annual returns as high as 7.4 percent. The set-up was simple: customers would deposit their funds into the program; the money would then be lent out to a third-party, generating interest.

Read more at The Daily Beast.