London Daily

Focus on the big picture.
Saturday, Oct 03, 2026

Winklevoss firm charged in US over crypto sales

Winklevoss firm charged in US over crypto sales

Cryptocurrency firms Gemini and Genesis have been charged by US regulators with illegally selling crypto assets to hundreds of thousands of investors.
The companies are accused of breaking the law by offering and selling the products through their joint programme, Gemini Earn, which launched in 2021.

The Securities and Exchange Commission (SEC) is in charge of the case.

Gemini was co-founded by twins Tyler and Cameron Winklevoss - known for their legal dispute with Facebook.

Tyler called the complaint "disappointing", and said his company looks forward to defending itself.

Genesis, which is owned by the crypto conglomerate Digital Currency Group, has so far not commented on the charges.


Public feud
Gary Gensler, who chairs the SEC, said: "Today's charges build on previous actions to make clear to the marketplace and the investing public that crypto lending platforms and other intermediaries need to comply with our time-tested securities laws.

"Doing so best protects investors. It promotes trust in markets. It's not optional. It's the law."

Over the past week, a public feud has erupted between the Winklevoss brothers and Barry Silbert, the chief executive of Digital Currency Group, the parent company of Genesis.

It related to Gemini Earn, which was sold to investors as an opportunity to make up to 7.4% in interest on their crypto currency holdings.

When FTX filed for bankruptcy last November, Genesis halted customer withdrawals saying it lacked sufficient liquid assets because of the volatility of the market.

This had a knock-on impact for 340,000 customers using Gemini Earn, leaving them unable to take out their crypto assets.

Cameron Winklevoss claims Digital Currency Group owes $900m (£737m) to clients of his firm Gemini as a result and accused Mr Silbert's group of "defrauding" his customers.

A Digital Currency Group spokesperson rejected the accusations, saying they were "malicious, false and defamatory attacks" and describing them as a "desperate and unconstructive publicity stunt".

'Wild West'
The SEC regulates financial markets in the US and has enforcement powers to launch civil actions against companies it believes has breached laws.

Through its complaint, filed in the US District Court for the Southern District of New York, it is seeking to hit both companies with civil penalties and make them repay "ill-gotten gains".

Earlier this week, Mr Gensler described crypto as the "Wild West".

These latest charges come as US officials crack down on the sector after the uproar caused by the bankruptcy of FTX and Alameda Research.

Their founder, Sam Bankman-Fried, is accused of fraud after diverting funds deposited by millions of customers on his FTX platform, and transferring them without authorisation to Alameda, a hedge fund.

Mr Bankman-Fried denies the charges.
Newsletter

Related Articles

0:00
0:00
Close
Church of England to Apologize for Role in Historical Forced Adoptions
UK Defence Ministry Investigates Historical Use of RAF Bases by Jeffrey Epstein
Scottish Housing Completions Fall to 11-Year Low
Welsh First Minister Calls for Expanded Devolution Settlement
UK Pledges £50 Million to Expand Domestic Military Drone Capabilities
UK Opens First Commercial Geothermal Plant in Cornwall
Green Party Wins Gorton and Denton By-Election as Labour Falls to Third
Prime Minister Andy Burnham Opens Review of UK-EU Relationship
UK Inflation Rises to 3.1%, Adding Pressure on Household Finances
UK Removes VAT From Domestic Electricity Bills to Ease Winter Energy Costs
Counterterrorism Police Arrest Sixth Suspect Over RAF Fairford Incident
UK Councils to Receive Sweeping Planning Powers to Ban New Vape and Betting Shops
Chancellor John Healey Faces Tax and Pension Scrutiny Ahead of Autumn Budget
Metropolitan Police Apologise for Accidental Disclosure in High-Profile Investigation
UK Universities Report Record International Enrolment as Housing Pressure Grows
UK Logistics Firms Monitor Rhine Disruption as Low Water Threatens European Supply Chains
UK Food Industry Warns Inflation Could Approach 7%
UK Introduces Vaping Duty and Mandatory Retail Stamps
Scotland Raises Property Taxes and Expands Child Payment in Annual Budget
Greggs Plans Four Factory Closures With 740 Jobs at Risk
OECD Raises UK 2026 Growth Forecast to 1.1%
UK Inflation Rises to 3.1% as Bank of England Faces Rate Debate
Andy Burnham Criticises Brexit and Says Rejoining EU Single Market Remains an Option
UK Imposes New Sanctions on Russian Military Networks and Propagandists
UK Launches Nationwide Early-Release Prison Scheme
Andy Burnham Says Security Services See Signs of Iranian Involvement in RAF Fairford Incident
Manchester City Found Guilty on Premier League Financial Charges After Independent Investigation
Scottish Court to Rule on Bid to Force No-Confidence Vote Against Aberdeen Council Co-Leader
UK Bans Extra Charges for Seating Children Under 12 Beside Accompanying Adults
UK Introduces Vaping Duty and New Licensing Requirements
Greggs to Close Four UK Factories and Cut 740 Jobs
Hundreds of Prisoners Released Early as England and Wales Prisons Reach 98% Capacity
UK Unveils New Russia Sanctions Targeting War Funding and Shadow Fleet
Burnham Says There Are Strong Indications of Iranian Involvement in RAF Fairford Security Breach
Prime Minister Andy Burnham Raises Prospect of Reviewing Britain's Post-Brexit EU Relationship
Markets Price in Bank of England Rate Increases as Inflation Rises to 3.1%
UK Borrowing Costs Climb Toward 5.5% as Global Bond Sell-Off Intensifies
UK-France One-In-One-Out Migration Agreement Expires as London Seeks Alternative Measures
Southwest England Faces Flood Alerts After Heavy Autumn Storms
UK Expands Funding for Rapid Electric Vehicle Charging Infrastructure
Welsh Government Approves Funding to Upgrade South Wales Transport
Northern Ireland Tensions Rise as Orange Order Rejects Drumcree Compromise
NHS Leaders Back Early Design of Proposed National Care Service
More Than One-Third of Regional UK Universities Face Financial Deficits
UK Current Account Deficit Narrows as Cross-Border Financial Flows Remain Strong
Bank of England and FCA Issue New Rules for Stablecoins and Digital Assets
MI5 Warns UK Universities Over Research Links With Chinese Institutions
UK Energy Price Cap Rises 4% as Electricity VAT Is Temporarily Suspended
Equity Calls for UK Personality Rights to Protect Performers From AI Replication
OpenAI Pauses Advanced Model Training Following Safety Concerns
×