Genesis Global Settles with SEC for $21M Amid Crypto Turmoil
March 19, 2024Genesis Global Capital LLC has agreed to a $21 million SEC settlement and a permanent injunction over unregistered securities sales.
The SEC charges stem from the Gemini Earn program, impacting 340,000 investors with inaccessible crypto assets valued at around $900 million.
Genesis is resolving additional legal issues, including a lawsuit from the New York Attorney General, and is authorized to sell $1.6 billion in GBTC to repay creditors.
The cryptocurrency market has recently seen a 6% downturn, with Bitcoin specifically facing a 6.6% price correction.
SEC officials, including Chair Gary Gensler and Enforcement Director Gurbir S. Grewal, underscore the settlement's role in enforcing securities law compliance in the crypto sector.
The actions against Genesis are part of the SEC's larger initiative to enhance regulatory clarity and investor protection in the cryptocurrency industry.
Summary based on 10 sources
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Sources
Seeking Alpha • Mar 19, 2024
Genesis Global agrees to pay $21M penalty in SEC final order on Gemini EarnBusiness Standard • Mar 19, 2024
Bankrupt crypto lender Genesis to pay $21 million to settle SEC chargesCoinDesk • Mar 19, 2024
Genesis to Pay SEC $21M Penalty to Settle Charges Over Gemini Earn Product