This Week on Crypto Twitter: Gemini vs Genesis, Week 2: The SEC Intervenes

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Illustration by Mitchell Preffer for Decrypt

We have now passed the second full week of 2023 and the patience and resilience of crypto fans has been rewarded with the first big price jumps in a long time. Most of the major cryptocurrencies by market capitalization have exploded by double-digit percentages over the past seven days.

However, no one is off the hook yet. On Monday, Fox News reporter Charles Gasparino leaked the latest gossip from the high-profile, high-profile FTX affair.

BREAKING: Prosecutors tell attorneys tied to the @SBF_FTX fraud investigation that the case is so sprawling it could drain Southern District resources because it includes potential kickbacks, contribution violations from campaign, market manipulation in addition to theft and fraud

Charles Gasparino (@CGasparino) January 9, 2023

Jane Manchun Wong, security researcher and Forbes 30 Under 30 winner, reported that day that Twitter wants to get in on the coin action and appears to be preparing its own digital economy, although Twitter Coins is unlikely to launch. on the blockchain.

Minnesota Congressman Tom Emmer finally received a response from authorities after he sent a letter last fall criticizing the government’s decision to ban crypto privacy tool Tornado Cash. The Treasury told Emmer it could not comment on pending litigation, and Emmer said he would be happy to wait to ask questions at a public hearing of the House Financial Services Committee.

His habit of buying Bitcoin may have caused his country millions of dollars in losses, but the authoritarian President of El Salvador, Nayib Bukele, wanted everyone to know on Wednesday that he is still selling Bitcoin and that he’s taking his legislation to the next level to prove it.

The Legislative Assembly of El Salvador has just approved, by an overwhelming majority, the new Digital Securities Law!

Forward, always forward

More on this thread https://t.co/8C21ZilyVP

Nayib Bukele (@nayibbukele) January 11, 2023

The MetaMask Support Twitter account warned users about a new style of exploit that day.

A new scam called “Address Poisoning” is on the rise. Here’s how it works: After sending a normal transaction, the scammer sends a $0 txn token, “poisoning” the txn history. (1/3)

MetaMask Support (@MetaMaskSupport) January 11, 2023

On Friday, Crypto.com co-founder and CEO Kris Marszalek announced that the exchange was set to proceed with its third round of job cuts since June, citing negative economic developments.

Today we announced the difficult decision to reduce our global workforce by approximately 20%.

Crypto.com Crisis (@kris) January 13, 2023

Finally, Sam Bankman-Fried wants you to know he has a blog.

Gemini vs. Genesis: Week 2

Aftershocks of the FTX collapse are still reverberating through the industry, spreading contagion, as highlighted by the news feud last week between crypto exchange Gemini and its creditor, Genesis, which should users of the product Geminis Earn $900 Million.

Gemini co-founder Cameron Winklevoss this week sent Digital Currency Group (DCG) chief Barry Silbert, 100% owner of Genesis, another open letter, leveling new accusations at him of fraud, lies and of greed. The DCG account called his claims a desperate and unconstructive publicity stunt.

This is another desperate and unconstructive publicity stunt by @cameron to deflect blame from himself and Gemini who are solely responsible for operating Gemini Earn and marketing the program to its customers .

Digital Currency Group (@DCGco) January 10, 2023

Later that week, Silbert shared a DCG letter to shareholders in which he calls out the bad actors and outbursts that have wreaked havoc on our industry. He goes on to say that this year the industry’s credibility and reputation have been nearly destroyed by an unprecedented wave of fraud and criminal behavior. Silbert posted an abridged version of the letter in the following thread.

I’ve been thinking a lot about the past year, the state of the industry and what’s next.

Here’s an update to address those thoughts, other developments, and some speculation from @DCGco (1/10) https://t.co/xEohthubvD

Barry Silbert (@BarrySilbert) January 10, 2023

On Thursday, the United States Securities and Exchange Commission (SEC) got involved and filed a new set of charges against Gemini and Genesis alleging that the Geminis Earn product was an unlicensed security.

Today we charged Genesis Global Capital, LLC and Gemini Trust Company, LLC for the unregistered offering and selling of securities to retail investors through the Gemini Earn crypto asset lending program.

For more:

United States Securities and Exchange Commission (@SECGov) January 12, 2023

Gemini co-founder and CEO Tyler Winklevoss reacted immediately, calling it a counterproductive move by the SEC. Later in the thread, Winklevoss said Gemini was eager to defend against that fabricated parking ticket.

4/ We can’t wait to defend ourselves against this fabricated parking ticket. And we’ll make sure that doesn’t distract us from the important recovery work we do.

Tyler Winklevoss (@tyler) January 12, 2023

Minnesota Republican Congressman Tom Emmer strongly criticized the SEC’s approach.

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