Genesis Faces $21 Million Penalty As SEC Charges Are Settled
Summary
Genesis Global settled with the SEC, agreeing to a $21 million civil penalty and a permanent injunction for the unregistered offer and sale of securities through its Gemini Earn program. The program allowed customers to loan crypto assets in exchange for interest payments. Genesis filed for Chapter 11 bankruptcy, and the SEC will receive its portion of the penalty after other claims are settled. SEC Chair emphasized the importance of compliance with securities laws for crypto lending platforms. Genesis also settled a separate lawsuit with the New York Attorney General. The cryptocurrency market has experienced a 6% decline, with Bitcoin undergoing a 6.6% price correction.
