Genesis To Pay $21 mn Settlement In SEC Case
Genesis Global Capital LLC has agreed to pay a $21 million civil penalty as part of a settlement with the Securities and Exchange Commission (SEC) over accusations related to its Gemini Earn
financing scheme.
The SEC filed the action against Gemini and Genesis in January 2023 for selling unregistered securities through the Gemini Earn program.
In November 2022, Genesis halted user withdrawals from its platform, with around 340,000 consumers and $900 million in funds under control.
Gemini and the New York State Department of Financial Services have negotiated a settlement that requires Gemini to repay at least $1.1 billion to consumers of the Gemini Earn Program through the Genesis bankruptcy process.
If approved, the company will return over $1.8 billion in value, $700 million more than when Genesis halted withdrawals on November 16, 2022.
(With inputs from Shikha Singh)
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