Gemini has formally communicated with the U.S. District Court for the Southern District of New York (SDNY), presenting its case against the ongoing SEC lawsuit. The heart of the matter is the SEC’s unclear accusations, contrasting with other companies like Binance, Coinbase, and Bittrex. While these companies cited jurisdictional issues, Gemini’s primary contention is the lack of clarity in the charges.
The SEC‘s requirement for proving the unregistered sale of securities includes identifying the security and confirming an actual sale. Gemini argues that the SEC has not fulfilled these conditions, rendering its complaint invalid.
Gemini disputes the SEC’s claim of two securities, the MDALA and Gemini Earn program, asserting this is not what the Complaint alleges. This mismatch weakens the SEC’s position and raises fairness concerns. Regarding the Gemini Earn program, the company’s lawyers argue no securities sale occurred; the program involved only loans and repayments.
Gemini dismisses a precedent case as hypothetical and irrelevant, and even if both alleged offerings are securities, the SEC fails to prove an actual sale. Gemini’s lawyers request the court’s independent evaluation of the SEC’s complaint’s legal validity. If the court agrees, Gemini seeks case dismissal. The SDNY will review the request, with further updates forthcoming.
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