Management at failed crypto lender Genesis settled a civil lawsuit filed by the US Securities and Exchange Commission (SEC) last year and agreed to pay a $21 million fine.
A special committee of Genesis Global Trading, as well as the crypto lender's legal and financial advisors, signed a settlement agreement with the US regulatory agency to “eliminate the risks, costs and uncertainty associated with the SEC's protracted litigation against Genesis.”
The lawsuit began with the SEC's complaint against Genesis and its partner in the Gemini Earn investment product, the Gemini cryptocurrency exchange. The lawsuit, filed in January 2023, alleges that the Gemini Earn program offered investors unregistered securities in violation of US law.
In January, Genesis Global Trading agreed to pay an $8 million fine to New York, voluntarily renounce its BitLicense and cease operating virtual assets in the state.