NYAG Files Complaint Against Gemini & Genesis, Grayscale Files S-3 Form with SEC

Oct 19, 2023
Market Update U.S. equity indices have been volatile today following Fed Chair Jerome Powell’s comments at the Economic Club of New York. The SPY and QQQ sold off as Powell spoke but have since pared losses, both declining about 0.20% on the day. $BTC (+1.20%) is gaining today as multiple ETF issuers have submitted amendments to their Bitcoin applications, indicating that the SEC is actively engaging with companies to clear any roadblocks potentially hindering approvals. $ETH (+0.08%) continues to relatively underperform as the ETH / BTC ratio is hovering around 0.054, a level not seen since July 2022. $SOL is outperforming this week, rising 15.32% ahead of its conference, Solana Breakpoint, slated to start on October 30th.The New York Attorney General (NYAG) has filed a complaint against Gemini, Genesis, DCG, Michael Moro, and Barry Silbert. To provide context, Gemini lent money to Genesis as part of its “Earn” product. Genesis subsequently lent money to 3AC and Alameda, which later declared bankruptcy, leaving a $1 billion hole on Genesis’ balance sheet. The NYAG complaint alleges Gemini stated its Earn product was a highly liquid investment and that Genesis was credit-worthy according to its risk controls. The complaint states that Gemini made false assurances that

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