Genesis to Pay SEC $21M Penalty to Settle Charges Over Gemini Earn Product
Summary
Bankrupt cryptocurrency lender Genesis Global Capital has agreed to pay $21 million to settle charges with the U.S. Securities and Exchange Commission (SEC) for violating securities laws in connection with the defunct Gemini Earn program. The settlement follows a New York judge's decision to allow the SEC case, filed in January 2023, to proceed. Genesis and two affiliates had declared bankruptcy shortly after the SEC charges. The SEC will not receive any part of the penalty until all other claims approved by the bankruptcy court are paid. The settlement underscores the need for crypto lending platforms and other intermediaries to comply with securities laws.
