Genesis settles SEC lawsuit with $21 million payment
Key Takeaways
- Genesis Global Capital LLC has agreed to a $21 million settlement with the SEC for unregistered securities charges related to its Gemini Earn program.
- The settlement highlights the SEC’s focus on bringing cryptocurrency platforms within the scope of traditional securities laws to enhance investor protection.
- The resolution follows a series of legal and financial issues for Genesis and Gemini.
Genesis Global Capital LLC A $21 million settlement was agreed upon. We work with the U.S. Securities and Exchange Commission (SEC).
This decision concludes the legal battle over the roles of Genesis and Gemini that the SEC began in January 2023. We market unregistered securities through our Gemini Earn program.
Did you know?
Do you want to become smarter and richer with cryptocurrency?
Subscribe – We post new cryptocurrency explainer videos every week!
Days before the settlement, a New York district court judge rejected the cryptocurrency company’s attempt to dismiss the lawsuit and allowed legal proceedings to continue.
According to the terms of the agreement The portion of the fine assessed by the SEC is prioritized after other bankruptcy-related payments. Retail investors in the Gemini Earn program are also included.
SEC Chairman Gary Gensler said: The importance of agreement is as follows:
Doing so best protects investors. This promotes trust in the market. It’s not optional. It is the law.
The resolution of this lawsuit is as follows. For its failure to comply, Gemini agreed to pay a $37 million fine. Concerns about the company’s operational integrity were cited, as detailed by the New York State Department of Financial Services (NYDFS).
Additionally, as part of its agreement with NYDFS, Gemini commits to: Reimburses more than $1.1 billion in full to Earn customers.
This agreement marks a significant moment in the regulatory environment and highlights the delicate relationship between the cryptocurrency world and established regulatory standards.
With a master’s degree in Economics, Politics, and Culture in East Asia, Aaron wrote a scientific thesis analyzing the differences between Western capitalism and collective capitalism after World War II.
With nearly 10 years of experience in the fintech industry, Aaron understands all of the biggest issues and challenges cryptocurrency enthusiasts face. He is a passionate analyst with an interest in data-driven and fact-based content, as well as content targeting both Web3 native users and industry newcomers.
Aaron is our go-to guy for all things digital currency. With a huge passion for blockchain and Web3 education, Aaron is working to transform the space as we know it and make it more accessible to complete beginners.
Aaron has been quoted in several popular media outlets and is a published author himself. In his spare time, he enjoys researching market trends and looking for the next supernova.
