In a series of tweets, Gemini co-founder, Tyler Winklevoss, slammed SEC for filing a lawsuit against his crypto exchange. Earlier, the US SEC announced that it was suing Gemini and Genesis for allegedly offering unregistered securities.

Tyler Winklevoss, one half of the Winklevoss twins, thinks SEC’s lawsuit against Gemini and Genesis at this time is counterproductive in helping Earn users get their funds.

Tyler Winklevoss slams SEC lawsuit as politically motivated

In a Twitter thread earlier today, Tyler Winklevoss said that the SEC’s behavior is counterproductive and it would do nothing to help Earn users get their assets back.Winklevoss further slammed SEC saying despite the ongoing conversations they decided to reveal the lawsuit to the press without notifying them.

“It’s unfortunate that they’re optimizing for political points instead of helping us advance the cause of 340,000 Earn users and other creditors,” he added.

In the series of tweets, Winklevoss also mentioned that the Earn program has been shut down for 2 months and he doesn’t see any point of urgency.

SEC alleges Gemini’s Earn program is security

SEC has alleged that Gemini’s Earn program, supported by Genesis’ lending activities, should have been registered as a security. In its complaint against Gemini and Genesis, SEC claims that the Earn program includes both an investment contract and a note. According to the SEC’s guidelines, these two features make the Earn program a security.

SEC has filed a lawsuit seeking permanent injunctive relief, disgorgement, and civil penalties against both Genesis and Gemini.

Gemini and Genesis have been at crossroads over $900 million in customer assets that Gemini entrusted to Genesis as part of the Earn program. However, when Genesis shut down its withdrawals after FTX collapse, freezing Earn program’s customers’ funds as well.

Tyler Winklevoss concluded by saying that they look forward to defending themselves against this “manufactured parking ticket.”

Jai Pratap is a Crypto and Blockchain enthusiast with over three years of working with different major media houses. His current role at Coingape includes creating high-impact web stories under tight deadlines. When not working, you’ll find him reading Russian literature or watching some Swedish movie.

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