Gemini denies reports of “cutting ties” with JPMorgan
|- Reports suggesting United States bank JPMorgan ending its relationship with Gemini surfaced on Thursday.
- Gemini was quick to respond, denying the rumors in one sentence.
- Gemini recently fell victim to the regulatory crackdown after the Securities and Exchange Commission (SEC) charged it with securities law violation.
Gemini made headlines in the wee hours of Thursday after the exchange platform became the subject of rumors following the release of a report. However, the Cameron Winklevoss-managed company was quick to react, sparing no time in denying the rumors.
Gemini and JPMorgan have not separated
A report on Thursday cited a source familiar with the situation, claiming that the United States-based bank JPMorgan was about to sever its ties with Gemini. The cryptocurrency exchange first joined hands with the bank back in 2020 when JPMorgan took Gemini on as a client.
However, even before the aforementioned reports could manage to make the headlines, Gemini came to its own rescue and immediately denied the rumors. Tweeting about the same, Gemini said,
"Despite reporting to the contrary, Gemini's banking relationship remains intact with JPMorgan."
The company did not provide any further explanation, nor did they provide a comment concerning the same. The emergence of the rumor remains unknown as the source cited in the reports was anonymous, but Gemini ensured that the rumors did not spread too far.
The regulatory pressure on cryptocurrency exchanges and platforms has been pretty intense. This is why the rumor would have been eaten up by skeptical investors and traders had it going out in the media. Also because in addition to the recent crypto crackdown by authorities, Gemini itself fell victim to the Securities and Exchange Commission (SEC).
Gemini vs. SEC
While fighting for its lost funds from Genesis, Gemini also faced trouble at the hands of the SEC. The regulatory body announced back in January this year that it was charging Gemini and Genesis for violating the securities law using its Earn program.
The Commission stated that offering unregistered securities to the public was the reason the charges were filed against the platforms. The Earn program partnership between Gemini and Genesis was considered the primary cause of securities law violation.
While the Earn program partnership was soon ended, the SEC is still seeking civil penalties and securities law compliance from Gemini and Genesis.
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