Genesis Global Capital, a bankrupt cryptocurrency lender, has consented to a final judgment requiring it to pay $21 million to settle allegations with the Securities and Exchange Commission (SEC) for breaching securities laws in connection with the now-defunct Gemini Earn program, the SEC reported on Tuesday.The settlement comes only days after a New York judge dismissed Genesis and cryptocurrency exchange Gemini’s attempts to halt the SEC action filed in January 2023 from proceeding.Genesis and two affiliates filed for bankruptcy immediately after the SEC allegations.
Genesis said in court records in February 2024 that it had reached an agreement with the SEC to settle the accusations for $21 million, and the arrangement appears to have been concluded.Critically, the SEC would not collect any “portion of the penalty until after payment of all other allowed claims by the bankruptcy court,” according to the release.
“Today’s settlement builds on previous actions to make clear to the marketplace and the investing public that crypto lending platforms and other intermediaries need to comply with our time-tested securities laws,” said SEC Chair Gary Gensler in a statement.