Genesis Global settles SEC lawsuit over securities violations by paying a settlement of $21 million.
Last January, a week before the bankruptcy declaration, the United States Securities and Exchange Commission (SEC) filed a lawsuit against the crypto lending company Genesis for alleged securities law violations through the Gemini Earn program, a lending service conducted in collaboration with the Gemini exchange.
Settlement with the SEC
According to recent court documents, Genesis has agreed to make a $21 million payment to the SEC as part of a settlement agreement to resolve the case.
As per the company’s restructuring plan, this settlement will impact users who participated in the Gemini Earn program, who will only be able to recover 61% of the value of their cryptocurrencies as of January 19, 2023, the date when Gemini filed for bankruptcy.
Legal dispute between Genesis and Gemini
In November 2023, Genesis Global had filed a lawsuit against Gemini Trust with the aim of recovering approximately $700 million. According to some disclosures, Gemini Trust had withdrawn a total value exceeding $689 million in the three months leading up to Genesis‘s bankruptcy declaration. The withdrawals were made by users of the Gemini Earn program.
