Summary
TLDR: Genesis Global Capital, LLC agrees to pay a $21 million civil penalty to the SEC for charges related to the unregistered sale of securities through its crypto lending program. SEC Chair emphasizes the importance of crypto companies following regulatory standards. This settlement aims to protect investors and promote trust in the crypto market.
Key Points
1. Genesis Global Capital, LLC has agreed to a final judgment with a $21 million civil penalty in a settlement with the US Securities and Exchange Commission (SEC) for charges related to the unregistered offer and sale of securities through its crypto asset lending program, Gemini Earn.
2. SEC Chair Gary Gensler emphasized the importance of crypto companies adhering to regulatory standards and highlighted the settlement as a reinforcement of the principle that crypto lending platforms must comply with securities laws.
3. The charges against Genesis and Gemini date back to allegations related to the collapse of the Gemini Earn program in November 2022, which left approximately 340,000 investors without access to their crypto assets worth an estimated $900 million. The settlement is part of the SEC’s broader efforts to bring clarity and security to the crypto market by enforcing compliance with established securities laws.