![]() ![]() Recently, the United States Securities and Exchange Commission (SEC) filed a complaint against Genesis Global Capital and Gemini Trust for selling unregistered securities to retail investors under the Earn lending program. Unifimoney Inc Unifimoney RIA Cryptocurrency trading is offered through GEMINI, a digital asset platform operated by and proprietary to Gemini Trust Company. It is worth noting that the Federal Deposit Insurance Act prohibits individuals from “implying that an uninsured product is FDIC–insured or from knowingly misrepresenting the extent and manner of deposit insurance."įollowing similar allegations, NYDFS issued cease and desist orders to five crypto-related firms, FTX US, Cryptonews, SmartAssets, Cryptosec, and FDICCrypto. If the investigators discover that Gemini was referring to assets held at financial institutions, the company won’t face any consequences, as they are subject to FDIC insurance. Some customers may have been confused with the wording of Gemini’s response and considered that the company was talking about Earn products. In its report, Axios highlighted that it is unclear whether Gemini actually violated federal laws. If the dollars are held in an omnibus account on behalf of GUSD holders, and the bank. NSB not only offers the loan and deposit products that our clients need but delivers them with expert, personalized service. Gemini advertised Earn as a high-yield product. The way FDIC insurance works is that each account is insured for 250k. Federal law prohibits anyone from making false claims about the FDIC insurance status of their financial product. dollar deposit portion of the GUSD reserves. Winklevoss-owned exchange Gemini is under investigation for references to FDIC insurance in its marketing. The cash portion of these GUSD reserves may be eligible for FDIC 'pass-through' insurance for Gemini customers, in the event of the failure of a bank holding the U.S. ![]() Nonetheless, we take great care to protect the assets of our clients from loss, as one of the oldest, largest. Exchanges are not even meant to be cryptocurrency wallets. FDIC-insured bank accounts and money market funds holding short-term treasury bonds. Are balances stored on Kraken insured Cryptocurrency exchanges do not qualify for deposit insurance programs because exchanges are not savings institutions. In response to one of those emails, Gemini reportedly noted: GUSD reserves are held by Gemini in accounts at U.S. The Federal Deposit Insurance Corporation is an independent agency supplying deposit insurance to depositors in American depository institutions.Īxios revealed several customer letters, which asked Gemini about the safety of their GUSD. ![]()
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