Genesis Global’s Settlement with SEC
Genesis Global and its affiliated entities have recently come to an agreement with the United States Securities and Exchange Commission (SEC), entailing a payment of $21 million as a civil penalty.
The settlement, which addresses the SEC’s civil lawsuit regarding the “unregistered offer and sale of securities” through the Gemini Earn program by Genesis, was put forth in a filing on January 31 in the U.S. Bankruptcy Court for the Southern District of New York.
According to the filing, the proposed settlement is the outcome of extensive negotiations between Genesis Global Holdco (GGC) and the SEC.
Legal Actions and Settlments in the Crypto Industry
The saga includes Genesis suspending withdrawals on its platform in November 2022 and subsequently filing for bankruptcy. The settlement also plays a role in the ongoing legal disputes involving Gemini, Genesis, Genesis’ parent company Digital Currency Group, and CEO Barry Silbert.
Earlier, Genesis Global Trading agreed to pay an $8 million penalty to the New York Department of Financial Services after findings of deficiencies in its Anti-Money Laundering and cybersecurity practices. This resulted in the cessation of operations in New York and relinquishing its BitLicense.
- The SEC has been active in prosecuting crypto firms, with recent settlements like the $24 million one with Bittrex and its former CEO.
- SEC Chair Gary Gensler has consistently argued for most cryptocurrencies to be deemed securities.
- Legal actions by the SEC have targeted various industry players including FTX’s co-founder, Binance, Changpeng Zhao, and Coinbase, though all entities have denied any wrongdoing.
In a notable occurrence, the SEC retracted its case against DEBT Box, following instances of inaccurate statements and scrutiny for a lack of transparency and precision in court proceedings.
