Summary
Genesis Global Holdco LLC, a crypto lender, has reached a settlement with US regulators to resolve a civil lawsuit alleging the company violated securities regulations. As part of the deal, Genesis will pay a $21 million civil penalty to the US Securities and Exchange Commission. However, the penalty will only be enforced if the company is able to fully repay its customers and creditors in Chapter 11 bankruptcy proceedings.
Key Points
1. Genesis Global Holdco LLC has reached a settlement with US regulators to resolve a civil lawsuit related to its terminated Gemini Earn program.
2. The company, a subsidiary of Barry Silbert’s Digital Currency Group Inc., has agreed to pay a $21 million civil penalty to the US Securities and Exchange Commission.
3. However, Genesis will only be required to pay the penalty if it is able to fully repay its customers and other creditors as part of its Chapter 11 bankruptcy proceedings.