SEC slaps bankrupt crypto trading firm Genesis with $21m penalty

SEC slaps bankrupt crypto trading firm Genesis with $21m penalty
Genesis has agreed to pay a $21 million penalty for the offer and sale of unregistered securities related to its role in the Gemini Earn program. Credit: Shutterstock / Artsaba Family

Genesis Global Capital, the bankrupt crypto trading firm, has agreed to pay a $21 million civil penalty to the US Securities and Exchange Commission.

The penalty was announced by the regulator on Tuesday.

The firm engaged in the unregistered offer and sale of securities through its partnership with crypto exchange Gemini as part of the Gemini Earn programme, the statement said.

Crypto lending platforms and other firms “need to comply with our time-tested securities laws,” SEC chair Gary Gensler said in the statement.

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“Doing so best protects investors. It promotes trust in markets. It’s not optional. It’s the law,” Gensler said.

Genesis filed for bankruptcy in January 2023, it was part of the Digital Currency Group of companies.

The SEC will not be paid until all other claimants in the bankruptcy court have been paid.