Genesis Settlement With The SEC Done With $21 Million Fine
Key Points:
- Genesis settlement with the SEC has been completed with a $21 million fine for an illegal crypto lending program.
- Regulatory scrutiny deepens as Genesis faces legal challenges and fines amid the collapse of cryptocurrency hedge funds and liquidity issues.
Genesis Global Capital has reached a settlement with the US Securities and Exchange Commission (SEC) regarding allegations of offering illegal securities through its crypto asset lending program, Gemini Earn.
Genesis Settlement With The SEC Lawsuit: Agrees to $21 Million Fine
The SEC announced that the company has agreed to pay a $21 million civil penalty and accept a permanent injunction as part of the Genesis settlement. However, the SEC won’t receive any portion of the penalty until after other claims, including those from retail investors in the Gemini Earn program, are settled in bankruptcy court.
The Genesis settlement agreement comes after it filed for bankruptcy in January 2023, following its involvement in the collapse of cryptocurrency hedge fund Three Arrows Capital and the FTX crisis scandal. The SEC had sued Genesis and Gemini Trust Company for illegally offering and selling securities to retail investors through the Gemini Earn program.
The SEC’s complaint highlighted that Gemini Earn, launched in February 2021, attracted approximately 340,000 retail users and $900 million in assets before halting withdrawals due to liquidity issues in November 2022. This led to mounting legal troubles for Genesis and Gemini, culminating in the SEC filing charges against them in October 2023.
Genesis Faces Trouble From Many Sides
Despite efforts by Genesis and Gemini to dismiss the case, a New York judge recently ruled in favor of allowing the SEC’s case to proceed. Additionally, Genesis faced regulatory scrutiny from the New York Financial Services Agency, resulting in a fine of $8 million for violating virtual currency and cybersecurity regulations.
As part of the Genesis settlement with the SEC, the company is obligated to pay the fine once it fulfills its obligations to customers and creditors under Chapter 11 bankruptcy protection.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Author
News
Genesis Settlement With The SEC Done With $21 Million Fine
Key Points:
- Genesis settlement with the SEC has been completed with a $21 million fine for an illegal crypto lending program.
- Regulatory scrutiny deepens as Genesis faces legal challenges and fines amid the collapse of cryptocurrency hedge funds and liquidity issues.
Genesis Global Capital has reached a settlement with the US Securities and Exchange Commission (SEC) regarding allegations of offering illegal securities through its crypto asset lending program, Gemini Earn.
Genesis Settlement With The SEC Lawsuit: Agrees to $21 Million Fine
The SEC announced that the company has agreed to pay a $21 million civil penalty and accept a permanent injunction as part of the Genesis settlement. However, the SEC won’t receive any portion of the penalty until after other claims, including those from retail investors in the Gemini Earn program, are settled in bankruptcy court.
The Genesis settlement agreement comes after it filed for bankruptcy in January 2023, following its involvement in the collapse of cryptocurrency hedge fund Three Arrows Capital and the FTX crisis scandal. The SEC had sued Genesis and Gemini Trust Company for illegally offering and selling securities to retail investors through the Gemini Earn program.
The SEC’s complaint highlighted that Gemini Earn, launched in February 2021, attracted approximately 340,000 retail users and $900 million in assets before halting withdrawals due to liquidity issues in November 2022. This led to mounting legal troubles for Genesis and Gemini, culminating in the SEC filing charges against them in October 2023.
Genesis Faces Trouble From Many Sides
Despite efforts by Genesis and Gemini to dismiss the case, a New York judge recently ruled in favor of allowing the SEC’s case to proceed. Additionally, Genesis faced regulatory scrutiny from the New York Financial Services Agency, resulting in a fine of $8 million for violating virtual currency and cybersecurity regulations.
As part of the Genesis settlement with the SEC, the company is obligated to pay the fine once it fulfills its obligations to customers and creditors under Chapter 11 bankruptcy protection.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Other Posts
Related Posts
Organic Coverage
