Genesis Global Capital, a cryptocurrency lender that recently declared bankruptcy, has entered into an agreement with the US Securities and Exchange Commission (SEC) to settle charges related to the Gemini Earn program. The agreement includes a payment of US$21 million from Genesis, according to an SEC announcement last Tuesday.
This outcome comes after a New York judge rejected an attempt by Genesis and cryptocurrency exchange Gemini to block the SEC from moving forward in January 2023. The legal action came shortly after Genesis, along with two affiliated companies, requested bankruptcy, highlighting significant financial problems within the company.
Court documents from February 2024 reveal that Genesis agreed to settle SEC charges for a sum of $21 million, indicating that both parties reached a consensus on the settlement amount.
It is important to note that, according to the SEC’s announcement, the commission will not be entitled to receive any amount of the fine until all other claims allowed by the bankruptcy court are satisfied. This detail highlights the prioritization of creditor claims in the bankruptcy process, ensuring that they are compensated before any fines are paid.
SEC Chairman Gary Gensler commented on the settlement, stating: “Today’s settlement builds on previous actions to make clear to the market and the investing public that crypto lending platforms and other intermediaries need to comply with our securities laws. tested by time.” This comment reinforces the SEC’s position that companies operating in the crypto space must strictly adhere to securities regulations to protect investors.
The Genesis case and the Gemini Earn program illustrate the complexities and regulatory challenges faced by cryptocurrency companies, as well as the SEC’s determination to ensure legal compliance within this rapidly growing market.
Disclaimer:
The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.
Source: https://portalcripto.com.br/genesis-pagara-us-21-milhoes-em-acordo-com-a-sec-por-programa-gemini-earn/
