Bankrupt Genesis Global Holdco Settles SEC Lawsuit for $21 Million
Genesis Global Holdco, a subsidiary of the Digital Currency Group, has reached a settlement with the Securities and Exchange Commission (SEC) to end a lawsuit over a lending program. The company has agreed to pay $21 million to the SEC, according to court filings. This settlement will resolve the civil action claim filed by the SEC and eliminate the risks and expenses associated with prolonged litigation. The payment will be made after fulfilling all other allowed claims.
The SEC’s Lawsuit
The SEC had charged both Gemini and Genesis Global Capital for the unregistered sale of securities to retail investors through a crypto lending program. Genesis Global Holdco filed for bankruptcy protection in January 2022 following financial losses related to the collapses of Three Arrows Capital and FTX. The Digital Currency Group and the SEC have not provided immediate comments regarding this settlement.
About Author
Sarah is a reporter at The Block, specializing in policy, regulation, and legal developments in the crypto industry. She has previously covered securities regulation and brings her expertise to reporting on crypto-related topics. Sarah’s work has been featured in various finance publications, including The Bond Buyer and American Banker. She holds a degree in print and digital journalism from the University of Missouri and is based in Washington D.C.
Hot Take: Genesis Global Holdco Settles SEC Lawsuit for $21 Million
Genesis Global Holdco, a subsidiary of the Digital Currency Group, has agreed to pay $21 million to settle a lawsuit brought by the Securities and Exchange Commission (SEC). The lawsuit was related to an unregistered lending program that targeted retail investors. By reaching this settlement, Genesis Global Holdco aims to resolve the civil action claim filed by the SEC and avoid the uncertainties and expenses associated with prolonged litigation. This development showcases the regulatory challenges faced by companies operating in the crypto industry and highlights the importance of compliance with securities laws.
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