Genesis Global Capital, a cryptocurrency lender recently declared bankrupt, has committed to a settlement agreement, agreeing to pay $21 million to resolve charges with the United States Securities and Exchange Commission (SEC).
This case revolves around violations of securities laws related to the now-defunct Gemini Earn program.
A Court-Monitored Settlement Agreement
The formalization of the settlement agreement comes shortly after a New York judge dismissed Genesis’ and cryptocurrency exchange platform Gemini’s requests to halt the SEC proceeding initiated in January 2023.
Genesis disclosed in court documents from February 2024 that an agreement had been reached with the SEC to settle the charges amounting to $21 million. This agreement has now been finalized, with a notable stipulation: the SEC will not receive any portion of the penalty until all other claims authorized by the bankruptcy court are paid.
Gary Gensler, SEC chairman, stated:
Today’s agreement builds on past actions to clarify to the market and investing public that cryptocurrency lending platforms and other intermediaries must adhere to our time-tested securities laws.
