Genesis Global Capital Settles with SEC in $21 Million Lawsuit
In a significant development in the Genesis and Gemini lawsuit by the U.S. Securities and Exchange Commission (SEC), Genesis Global Capital has decided to settle with the SEC and agreed to pay $21 million to settle the charges for violating securities laws for its role with the now-inoperative Gemini Earn program, the SEC announced Tuesday.
Genesis Global Capital Settlement with SEC
– Genesis Global Capital settles with the SEC in a lawsuit
– Agrees to pay $21 million for violating securities laws
– Settlement related to the now-inoperative Gemini Earn program
SEC Announcement of Genesis Global Capital Settlement
– Genesis Global Capital to pay a $21 million penalty
– Permanent injunction for selling unregistered securities
– SEC to receive penalty after completion of all payments of claims
SEC Chair’s Statement on Genesis Settlement
– SEC Chair, Gary Gensler, comments on the settlement
– Emphasizes the importance of adhering to security laws
– Ensuring investor protection and trust in the market
According to an official press release by the US SEC on March 19, Genesis Global Capital has agreed to pay a $21 million penalty and a permanent injunction that it sold unregistered securities. The SEC will receive the penalty after the bankruptcy court notifies the completion of all payments of claims, including claims by retail investors in the Gemini Earn program.
SEC’s Perspective on the Settlement
– SEC underscores the significance of the settlement
– Clear message to investors and the marketplace
– Compliance with SEC’s security laws is essential
Genesis had suspended user withdrawals on its platform in November 2022 when Gemini Earn had around 340,000 customers and $900 million in assets under management, according to the SEC announcement. This development comes three weeks after Gemini agreed to pay a $37 million penalty over multiple compliance failures.
Ensuring Investors’ Asset Recovery
– Investors to get their assets back on approval by bankruptcy court
– Highlighting risks of non-compliance with federal securities laws
– Investor protection disclosures are crucial
“The collapse of the Gemini Earn program underscores the unknown risks that investors are exposed to when market participants fail to comply with the federal securities laws,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement. “As this enforcement action makes clear, no amount of hype and advertising can substitute for the investor-protection disclosures required by the federal securities laws.”
Conclusion of Lawsuit with $21 Million Fine
– End of SEC lawsuit against Gemini and Genesis
– Fine of $21 million for selling unregistered securities
– Expectation of 100% asset return for Earn users if approved by bankruptcy court
The $21 million fine is the end of the lawsuit initiated by the SEC against Gemini and Genesis in January 2023 for selling unregistered securities through the Gemini Earn program. If approved by the bankruptcy court, Gemini has said that it expects Earn users to receive 100% of their crypto assets along with appreciation.
Hot Take: Compliance with Security Laws Vital for Investor Protection
In conclusion, the Genesis Global Capital settlement with the SEC highlights the importance of complying with security laws to protect investors and promote trust in the market. The $21 million fine serves as a reminder that regulatory compliance is crucial in the cryptocurrency space to ensure transparency and security for all stakeholders.
By
By
By
By
By