Yazılar

SEC Drops Case Against Winklevoss-Founded Gemini

/in /tarafından

The U.S. Securities and Exchange Commission has agreed to dismiss its enforcement case against cryptocurrency exchange Gemini, founded by billionaire twins Tyler Winklevoss and Cameron Winklevoss, after investors in its lending programme recovered their assets in full.

The SEC and Gemini filed a joint stipulation in federal court in Manhattan on Friday, citing the complete return of crypto assets to Gemini Earn investors through the Genesis Global Capital bankruptcy process between May and June 2024.

In 2023, the SEC charged Genesis and Gemini Trust Company with illegally selling securities via the Gemini Earn programme, which allowed customers to lend crypto assets to Genesis in exchange for interest. At its peak, the programme held about $940 million in assets before Genesis froze withdrawals in November 2022.

Unlike several crypto firms that collapsed after the 2022 market downturn, Genesis ultimately returned customers’ crypto in kind rather than liquidating assets and paying cash. The SEC said this full recovery made dismissal of the claims appropriate, while stressing the decision does not set a precedent for other cases.

The move reflects a broader shift in U.S. crypto enforcement under President Donald Trump, who has pledged a more industry-friendly regulatory approach. Gemini did not immediately comment on the dismissal.

Celsius Founder Alex Mashinsky Sentenced to 12 Years in Prison for Crypto Fraud

/in /tarafından

Alex Mashinsky, the founder and former CEO of defunct crypto lender Celsius Network, was sentenced Thursday to 12 years in prison after pleading guilty to securities and commodities fraud in a case that stands among the most severe stemming from the 2022 cryptocurrency market collapse.

U.S. District Judge John Koeltl in Manhattan imposed the sentence, which also includes three years of supervised release and a $48.4 million forfeiture. The ruling comes after federal prosecutors accused Mashinsky, 59, of deceiving Celsius customers about the platform’s safety and artificially inflating the value of the CEL token, Celsius’ proprietary digital asset.

The prosecution sought at least 20 years of imprisonment, describing Mashinsky’s actions as a betrayal that caused billions in customer losses while he personally gained over $48 million.

“The case for tokenization and the use of digital assets is strong, but it is not a license to deceive,” said U.S. Attorney Jay Clayton in a post-sentencing statement.

Mashinsky had asked for a sentence of just one year and one day, expressing remorse and a desire to make amends. His attorneys did not immediately provide comment following the sentencing.

Founded in 2017, Celsius was based in Hoboken, New Jersey, and promised high-yield returns, offering up to 17% interest on some crypto deposits. Like other lenders in the crypto space, Celsius attracted customers with the promise of easy lending and high returns while funneling deposits to institutional borrowers in hopes of profiting from the spread.

However, the model collapsed under the weight of falling crypto prices. In July 2022, Celsius filed for Chapter 11 bankruptcy with a $1.19 billion balance sheet deficit, after a customer run on deposits.

Mashinsky’s sentencing follows the high-profile conviction of FTX founder Sam Bankman-Fried, who is serving 25 years for fraud and is currently appealing. Mashinsky also faces ongoing civil lawsuits from the SEC, CFTC, FTC, and New York Attorney General Letitia James.

Born in Ukraine, Mashinsky immigrated to Israel and later moved to New York City in 1988, where he became a prominent tech entrepreneur before his fall from grace in the crypto world.