Genesis Global Capital Settles SEC Charges with $21 Million Penalty

#Genesis Global Capital has reached a settlement with the U.S. Securities and Exchange Commission (SEC) by agreeing to a $21 million fine. This settlement concludes legal proceedings related to the unregistered securities offering through the Gemini Earn lending program. The SEC had accused Genesis and Gemini of launching this crypto lending program targeted at retail investors without the necessary registration.

#SEC Chair Gary Gensler emphasized the importance of compliance with securities laws for crypto lending platforms and intermediaries, stating that adherence to these regulations is crucial for investor protection, market trust, and is mandated by law. This settlement marks a continuation of the SEC's efforts to enforce regulatory compliance within the cryptocurrency sector.

As part of the agreement with the SEC, the penalty payment will be prioritized after the fulfillment of bankruptcy-related payments, including those to retail investors.