Bankrupt Crypto Lender Genesis Settles SEC’s Earn Lawsuit
- Genesis settled a civil lawsuit brought by the SEC last year
- Genesis could pay $21 million penalty if creditors are repaid
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Genesis Global Holdco LLC has struck a deal with US regulators to end a civil lawsuit that accused the bankrupt crypto lender of breaking securities rules through its now terminated Gemini Earn program.
Genesis, a subsidiary of Barry Silbert’s Digital Currency Group Inc., agreed to pay a $21 million civil penalty to the US Securities and Exchange Commission to end the lawsuit. But it will only have to pay the penalty if the company is able to fully repay its customers and other creditors in Chapter 11, according to papers filed Wednesday in New York bankruptcy court.