The U.S. Securities and Exchange Commission (SEC) has formally declared a resolution with Genesis Global Capital over Gemini earn.
Genesis has consented to paying a civil penalty of $21 million and implementing a permanent injunction due to violating securities laws.
SEC Chair Gary Gensler emphasizes the importance of crypto companies adhering to established securities regulations.
Genesis Global Capital has reached a significant resolution in the Genesis and Gemini case initiated by the U.S. Securities and Exchange Commission (SEC). They have chosen to settle with the SEC and have agreed to pay $21 million to resolve the accusations related to the Gemini Earn programme.
Genesis settled with the United States Securities and Exchange Commission (SEC).
The US SEC orders Genesis Global Capital, according to an official press statement on March 19, to pay a $21 million penalty and a permanent injunction for selling unregistered securities. A federal judge in New York approves a $21 million settlement against Genesis and Genesis Trust Co.
If the bankruptcy court confirms all claims, including those by retail investors in Gemini Earn, it will penalize the SEC. SEC Chair Gary Gensler says, “Genesis failed to register its retail crypto lending product before making it public, circumventing disclosure obligations.”
Genesis and Gemini have made a significant impact on the cryptocurrency market.
Although the $21 million penalty signifies the resolution of the lawsuit, Genesis and Gemini Earn have significantly impacted worldwide markets. After FTX collapsed, Genesis, a crypto lender, ceased repayments, withdrawals, and the initiation of new loans. Gopax, a cryptocurrency exchange in South Korea, experienced withdrawal problems with its GoFi earn product connected to Genesis.
In January 2023, the company declared bankruptcy, and the SEC charged Genesis and Gemini Trust. Gemini, a NY-based crypto exchange, signed a deal to reimburse $1.1 billion to Earn program customers. This action is being taken in response to Genesis, a crypto loan company’s bankruptcy.
Genesis has received approval from the U.S. Bankruptcy Court in the Southern District of New York to liquidate its GBTC assets, valued at $1.6 billion, to satisfy its creditors.
