The problems experienced in 2022 and 2023 led to serious blows to the cryptocurrency markets. However, these issues began to unravel by the last quarter of the past year. One of the lawsuits faced by crypto companies is now coming to an end.
Genesis, the largest crypto lending firm, declared bankruptcy for reasons previously explained in detail. Gemini Earn, which worked with Genesis, also started failing to make payments to its customers, and amidst this chaos, U.S. regulators stepped in. Genesis Global Holdco LLC is now collaborating with regulators to end the lawsuit accusing them of violating securities regulations through the Gemini Earn program.
A payment of 21 million dollars will be made to the SEC, and this penalty can be collected by the institution if there is any power left after the compensation of creditors in the chapter 11 bankruptcy process. The partnership between Gemini and Genesis had led to the illegal collection of money from customers and Gemini exchange providing incomplete and incorrect information to its customers.
Now, Genesis states in court documents that the settlement will prevent further lawsuits with the SEC, thereby saving cash by going the route of reconciliation.