Genesis reaches settlement with SEC! Must pay $21 million in civil penalties

According to Bloomberg reports, Genesis Global Holdco, LLC, the parent company of Genesis Global Capital, the institutional lending platform of Digital Currency Group (DCG), has reached a settlement agreement with the SEC, ending their dispute. civil litigation. Under the agreement, Genesis is required to pay a $21 million civil penalty to resolve the SEC's charges. This settlement is an important milestone for Genesis, helping them regain credibility and continue to grow in the digital currency industry.

According to documents filed on Wednesday, Genesis will only need to pay the SEC penalty after it repays users and other creditors in full.

The agreement must still be approved by a bankruptcy judge.

Genesis said in court documents that it hoped to avoid further legal disputes with the SEC through the settlement in order to save cash. They are currently working to return as much cash as possible to creditors, and their debt repayment plan has been submitted for approval. They believe that if the legal defense continues, it will seriously distract Genesis and its advisers.

Genesis lies a lot

After mid-2022, a series of lending platforms including BlockFi, Celsius and Genesis went bankrupt one after another. The statements before bankruptcy repeatedly emphasized that the assets were safe, FTX is also like this.

Eventually Genesis submitted for bankruptcy reorganization in January 2023.

Gemini Earn, which was jointly operated by Genesis and Gemini Trust Co at the time, began to blame each other after Genesis experienced a funding gap, and was eventually accused by the SEC of issuing unregistered securities.

Genesis and Gemini deny wrongdoing and argue that Gemini Earn is not a security. According to legal documents, the program has been terminated.

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