Genesis will pay a $21 million fine to the SEC

“It’s the law!” These words from Gary Gensler have just been spoken as part of the final settlement of a lawsuit involving Genesis Global Capital, Gemini and Securities and Exchange Commission (DRY). The process, which began more than a year ago, involves the funds of Gemini customers who took advantage of the Get Earnings program and which eventually found themselves blocked by the bankruptcy of Genesis, the relevant service provider. After months of debate, appeals and sometimes conflicting statements, Genesis management agreed to pay a $21 million fine. All’s well That ends well? For the head of the SEC in any case, justice has been done, according to the law. Steps.

A fine of 21 million dollars to close the case

Genesis and Gemini they were accused and eventually convicted sale of unregistered financial securities as part of the popular Earn program offered to customers of the Winklevoss Brothers platform. To stop the procedure, Genesis Global Capital, LLC therefore agreed to pay a fine of 21 million dollars to the SEC, even if the Commission does not receive the entire amount immediately:

“The SEC will not receive any portion of the penalty until all other claims approved by the bankruptcy court are paid, including the claims of retail investors in the Gemini Earn program. »

SEC Press Release – Source: Securities and Exchange Commission

Gary Gensler, head of the SEC, spoke in a press release about the reasons for these sanctions:

“We accused Genesis of failing to confidentially register its lending product before offering it to the public, thereby circumventing important disclosure requirements designed to protect investors.”

SEC press release – Source: Securities and Exchange Commission

The head of the SEC is drinking whey and enjoying his victory

In a situation that currently does not suit him, the head of the institution reminded all players in the crypto industry and their responsibilities to protect American investors:

“Today’s settlement is based on previous steps aimed at making it clear to the market and investing public that crypto lending platforms and other intermediaries must follow our proven securities laws. This better protects investors and promotes confidence in the markets. It is not optional. It’s the law.

SEC press release – Source: Securities and Exchange Commission

In the same document, another SEC official, Gurbir S. Grewaltook the opportunity to recall the risks arising from investments in cryptoassets:

“The collapse of the Gemini Earn program highlights the unknown risks investors face when market participants fail to comply with federal securities laws. As this enforcement action makes clear, no amount of hype or publicity can replace needed investor protection solutions.” and federal securities laws ».

SEC press release – Source: Securities and Exchange Commission

So it’s really a small victory for the Washington regulator who has recently been hit by part of the crypto ecosystem who criticize him for his lack of anticipation and his lack of understanding of the issues in the sector. Recently, it was the Debt Box issue that embarrassed Gary Gensler and his teams and the decision in his favor is time to restore (a little) the federal image.