Genesis Global Capital agreed to pay penalties as part of a settlement over SEC charges. According to the cryptocurrency company’s settlement with the SEC, the penalty amount will be 21 million dollars. It will make its payment to the SEC only after it has paid all claims authorized by the bankruptcy court.
SEC fined cryptocurrency company Genesis!
Genesis Global Capital agreed to pay a $21 million civil penalty as part of a settlement on charges that it offered and sold unregistered securities through Gemini Earn. The U.S. Securities and Exchange Commission issued a permanent injunction, according to a press release. It will make its payment to the SEC only after it has paid all claims authorized by the bankruptcy court. As the SEC notes, this includes individual investors from Gemini Earn. SEC Chairman Gary Gensler made the following statement:
We accused Genesis of failing to register its retail crypto lending product before offering it to the public and bypassing basic disclosure requirements designed to protect investors. Today’s settlement builds on previous actions to make clear to the market and investing public that crypto lending platforms and other intermediaries must comply with our time-tested securities laws. Doing this best protects investors. It promotes confidence in markets. This is not optional. This is the law.
The collapse of the Gemini Earn program
Gurbir S. Grewal, director of the SEC’s Enforcement Division, also made a statement on the issue. “The collapse of the Gemini Earn program underscores the unknown risks investors are exposed to when market participants fail to comply with federal securities laws,” Grewal said. Additionally, Grewal underlined the following points:
As this enforcement action makes clear, no amount of hype or advertising can substitute for the investor protection disclosures required by the federal securities laws.
The basis for the accusations against the cryptocurrency company
cryptokoin.comAs you follow from , the SEC charged Genesis and Gemini Trust Company on January 12, 2023. The Gemini Earn program was at the center of the complaint. This program allowed individual investors to lend their crypto assets to Genesis. Investors received interest on the assets they lent in this way.
Gemini Earn investors were unable to withdraw their crypto assets as of November 2022 due to lack of liquidity for Genesis, which filed a voluntary Chapter 11 filing in the U.S. Bankruptcy Court for the Southern District of New York on January 19, 2023.
To be informed about the latest developments, follow us twitter‘in, Facebookin and InstagramFollow on and Telegram And YouTube Join our channel!