Genesis Settles with U.S SEC for $21M Over Gemini Earn Program
- Genesis Global Capital has consented to pay a $21 million fine and a permanent injunction.
- Last year in January, the SEC filed charges against Genesis and Gemini Trust.
Genesis Global Capital has opted to settle with the U.S SEC and agreed to pay $21 million to resolve the accusations over the Gemini Earn program. This is a historic milestone in the action launched by the SEC against Genesis and Gemini.
Genesis Global Capital has consented to pay a $21 million fine and a permanent injunction for selling securities that were not registered, according to a U.S SEC official news statement dated March 19. The $21 million settlement between Genesis and Genesis Trust Co. was granted by a federal court in New York on Monday, ending the dispute.
Failing to Register Crypto Lending Product
Once the bankruptcy court announces that all claims, including those from retail investors in the Gemini Earn program, have been paid, the SEC shall receive the penalty.
SEC Chair Gary Gensler stated:
We charged Genesis with failing to register its retail crypto lending product before offering it to the public, bypassing essential disclosure requirements designed to protect investors.
Genesis and Gemini Earn have had an influence on markets worldwide, even if the litigation has ended with the $21 million penalty. After FTX went down, crypto lender Genesis stopped processing withdrawals, repayments, and new loans. A Genesis-affiliated cryptocurrency exchange in South Korea, Gopax, also had withdrawal problems with their GoFi earn program.
Last year in January, the SEC filed charges against Genesis and Gemini Trust after the companys bankruptcy. Also, in the aftermath of crypto lending business Genesis bankruptcy, Gemini, a cryptocurrency exchange located in New York, has agreed to return digital assets valued at $1.1 billion to customers of its Earn program.
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Read more: https://thenewscrypto.com/genesis-settles-with-u-s-sec-for-21m-over-gemini-earn-program/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
