Genesis Global reaches settlement with SEC, resolving $21 million dispute related to Gemini Earn.

Genesis Global, a subsidiary of Digital Currency Group, has reached an agreement to pay a $21 million civil penalty to settle charges filed by the Securities and Exchange Commission (SEC). This settlement comes after the SEC accused Genesis of offering unregistered securities through its Gemini Earn program. However, Genesis will only pay the penalty if it successfully repays its creditors and customers during its Chapter 11 bankruptcy proceedings.

The SEC’s lawsuit, which was filed last year, forced Genesis to address the allegations while dealing with its ongoing bankruptcy proceedings. Currently, Genesis is seeking approval from the bankruptcy court for the settlement, which will enable the company to efficiently handle legal challenges and navigate through Chapter 11.

The settlement not only resolves the financial aspect of the case, but it also allows Genesis to focus on returning as much cash as possible to its creditors. By saving cash and prioritizing the Chapter 11 proceedings, the company aims to successfully navigate the legal challenges and provide relief to its distressed customers who have been waiting for over a year to recover their funds.

This settlement is a strategic move for Genesis, positioning the company to efficiently manage the legal challenges it faces and ensure the maximum recovery of funds for its customers.