Winklevoss Twins Reach Settlement with SEC Over Gemini Earn Dispute

SEC Billionaire Winklevoss Twins May Resolve Lawsuit Over Gemini Earn

Washington D.C. | Channel NewsAsia - The Securities and Exchange Commission (SEC) has reached a tentative agreement with the Winklevoss twins, Cameron and Tyler, to resolve a lawsuit over their cryptocurrency lending platform, Gemini Earn.

The twins, who are known for their high-profile lawsuits against Facebook's Mark Zuckerberg over allegations of mistreatment during their time at Harvard, had been accused by the SEC of violating securities laws by failing to register their Gemini Earn program, which allowed users to lend their cryptocurrencies to the platform and earn interest.

The SEC had alleged that the twins had failed to provide investors with adequate disclosures about the risks associated with the program, and that they had ignored repeated warnings from regulators to stop offering the program.

Under the proposed settlement, the Winklevoss twins would be required to pay a fine of $45,000 and would be barred from violating securities laws in the future. The twins would also be required to register their Gemini Earn program as a securities offering.

The twins would also be required to provide a detailed report to the SEC on the operations and financials of Gemini Earn, and would be subject to ongoing oversight by the regulator.

The proposed settlement is subject to approval by a federal court judge. If approved, it would mark a significant resolution to the lawsuit, which had been ongoing for several years.

The Winklevoss twins have been vocal critics of the SEC's handling of the cryptocurrency market, and had argued that the agency's actions were stifling innovation in the space. The proposed settlement appears to be a compromise between the twins' desire to continue operating their business and the SEC's concerns about investor protection.

The twins' lawyer, James Cox, said in a statement that the proposed settlement "reflects a commitment to transparency and compliance" and that the twins are "pleased to have reached a resolution that allows them to continue operating their business while also providing important protections for investors."

The SEC's settlement with the Winklevoss twins is the latest in a series of high-profile enforcement actions against cryptocurrency firms. The agency has been cracking down on unregistered securities offerings and other violations of securities laws in the rapidly growing cryptocurrency market.