The bankrupt crypto credit platform Genesis has agreed to pay a $21 million fine to resolve SEC charges.
Genesis, which suffered a major blow from the bankruptcy of FTX’s crypto exchange, agreed to pay a $21 million fine to resolve the Securities and Exchange Commission’s (SEC) charges.
A formal statement published by the regulatory institution on March 19th stated that this agreement was reached after a lengthy process. Additionally, Gary Gensler, stated in the announcement that the payments would be beneficial to the investors:
Today’s settlement is based on previous actions taken to clearly state that crypto credit platforms and other intermediaries must comply with our tested securities laws over time. Doing so best protects investors. Enhances trust in the markets. It’s not optional. It’s the law.
Last year, SEC had filed a lawsuit against Genesis, alleging that it had engaged in unregistered securities sales. SEC had specified that the product in question was the “Earn” program.
