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Genesis Global Capital Settles SEC Charges for $21 Million

The bankrupt crypto lender's settlement prioritizes payment of bankruptcy claims before the SEC receives its penalty.

Overview

  • Genesis Global Capital LLC agrees to a $21 million civil fine to settle SEC charges related to illegal securities sales.
  • The settlement resolves charges filed in January 2023 over the unregistered sale of securities through the Gemini Earn program.
  • Payment to the SEC will only follow after all allowed bankruptcy claims have been settled, including those from retail investors.
  • The SEC emphasizes the importance of compliance with securities laws for crypto lending platforms to protect investors.
  • Genesis and Gemini Trust Company faced liquidity issues in November 2022, leading to Genesis filing for bankruptcy in January 2023.