Tyler Winklevoss, the co-founder of cryptocurrency trade Gemini, has hit out on the regulator charging the trade over issuing unregistered securities, calling the allegations “tremendous lame” and a “manufactured parking ticket.”

In a collection of tweets on Jan. 12, Winklevoss shared his disappointment over the fees from the Securities and Alternate Fee (SEC) concerning Gemini’s “Earn” program, claiming the regulator was “optimizing for political factors.”

He referred to as the SEC’s motion “completely counterproductive” and stated Gemini had been discussing the Earn program with the regulator “for greater than 17 months.”

2/ As a matter of background, the Earn program was regulated by the @NYDFS and we’ve been in discussions with the SEC in regards to the Earn program for greater than 17 months. They by no means raised the prospect of any enforcement motion till AFTER Genesis paused withdrawals on November sixteenth.

— Tyler Winklevoss (@tyler) January 12, 2023

“They by no means raised the prospect of any enforcement motion till AFTER Genesis paused withdrawals on November sixteenth,” Winklevoss added.

Gemini’s Earn product launched in February 2021 and formally ran till Jan. 8. A take care of the crypto lender and Digital Forex Group (DCG) subsidiary Genesis allowed Gemini customers to earn yield by lending their crypto to the market-making agency.

Genesis tells purchasers it wants extra time on monetary woes after Gemini calls for motion

In early November, Genesis revealed it had roughly $175 million caught within the now-bankrupt FTX trade. DCG despatched$140 millionto the firmin an try and shore up its steadiness sheet however by Nov. 16 Genesis suspended withdrawals, citing FTX’s chapter.

Genesis owes 340,000 Gemini Earn customers $900 million based on open letters by Gemini co-founder Cameron Winklevoss.

Tyler Winklevoss said Gemini would defend itself towards the unregistered safety fees and would “ensure that this doesn’t distract us from the necessary restoration work we’re doing.”