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.

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.