Genesis agrees to $21M SEC settlement over Gemini earnings.

Genesis settles $21M SEC fine, permanent injunction for Gemini revenue violations SEC Chairman Gensler emphasizes crypto's compliance with securities laws. Genesis has been authorized to sell $1.6B GBTC of assets.

Genesis Global Capital has agreed to pay a $21 million fine and receive a permanent order to sell unregistered securities, according to an official press release from the US Securities and Exchange Commission (SEC). The settlement, reached by a New York federal judge, is a major step toward settling the lawsuit against Genesis and the Jens Trust Company.

The settlement asserts that Genesis failed to register the retail lender's product, bypassing critical disclosure requirements intended to protect investors.

SEC Chairman Gary Gensler emphasized the importance of compliance with securities laws in the crypto lending space.

Impact on the crypto market

Following the collapse of FTX, Genesis faced challenges, including blocking payments, withdrawals and finding new sources of credit.

The exit issues impacted Gopax's GoFi revenue generation, which is linked to Genesis, reflecting the broader influence of Genesis and Gemini IR on the global cryptocurrency markets.

The results of Genesis and Gemini IRN have been echoed throughout the cryptocurrency market.

New York-based cryptocurrency exchange Gemini has agreed to return $1.1 billion in digital assets to users in the wake of Genesis' bankruptcy.

Meanwhile, Genesis received permission from the US Bankruptcy Court in the Southern District of New York to sell $1.6 billion worth of GBTC to pay creditors, signaling progress in the resolution process.

This recommendation highlights the importance of transparency and compliance with security laws, especially in emerging areas such as crypto lending.