Genesis Global Finalizes $21 Million Settlement with SEC

Genesis Global Settles with SEC

Genesis Global, a Digital Currency Group (DCG) company, has settled with the US Securities and Exchange Commission for $21 million to resolve a civil lawsuit. The complaint involved the unregistered offer and sale of securities through the Gemini Earn program, spanning from February 2021 to November 2022.

Comprehensive Settlement Agreement

The resolution includes a provision that places an “Allowed SEC Claim” of $21 million against Genesis Global. However, this claim takes a backseat to other claims such as administrative expenses and secured priorities. The agreement, now subject to court approval, is designed to settle the SEC lawsuit effectively and facilitate Chapter 11 bankruptcy proceedings for Genesis.

The Path Forward

The settlement paves the way for Genesis to move forward in its Chapter 11 bankruptcy process. While the settlement provides some relief, it must receive the court's final judgment. Should bankruptcy court approval not be obtained, the SEC may reassess disgorgement, interest, and penalty amounts.