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Genesis Global Capital has settled with the U.S. Securities and Exchange Commission (SEC) and agreed to pay a $21 million civil penalty. The SEC further disclosed that the regulator will “not receive any portion of the penalty until after payment of all other allowed claims by the bankruptcy court, including claims by retail investors in the Gemini Earn program.”
On March 19, 2024, the U.S. Securities and Exchange Commission (SEC) and the now-bankrupt crypto lending firm Genesis reached a settlement. Genesis agreed to pay $21 million in civil penalties as it was charged with engaging “in the unregistered offer and sale of securities through a crypto asset lending program known as the Gemini Earn program.” However, the SEC will not get a penny until the firm’s bankruptcy claims are paid in full including Gemini Earn claimants.
“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,” SEC Chair Gary Gensler remarked on Tuesday. “Today’s settlement builds on previous actions to make clear to the marketplace and the investing public that crypto lending platforms and other intermediaries need to comply with our time-tested securities laws. Doing so best protects investors. It promotes trust in markets. It’s not optional. It’s the law.”