Genesis agrees to pay $21m settlement

THE US Securities and Exchange Commission (SEC) says Genesis Global Capital LLC has agreed to settle a $21 million fine over charges it sold securities illegally through its crypto lending program without registering them.

Charges were brought about 14 months ago against Genesis and the Gemini Trust Company LLC during a slew of SEC clampdowns on major cryptocurrency firms.

The company, a subsidiary of Digital Currency Group (DCG), filed for bankruptcy around the same time charges were brought in January 2023. It had been thrown into financial chaos following the collapse the FTX crypto exchange in November 2022.

At the time, it was forced to freeze customer transactions in its lending program that had raised billions of dollars in digital assets from investors.

With an agreement now in place to pay the $21m fine, the SEC today confirmed Genesis would not be penalised until a bankruptcy court settles outstanding claims against it.