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Source: SEC official website; compile: Deng Tong, Bitchain Vision
The US Securities and Exchange Commission announced today that Genesis Global Capital, LLC agreed to the final decision to order itPay 21 million US dollars of civil fines and implement permanent ban to reconcile its allegations of unregistered securities issuance and sales through encrypted assets.According to the settlement clause, SECs will not receive any part of the fines before paying all other claims allowed by the bankruptcy court (including the claims of retail investors in the Gemini Earn plan).
Gary Gensler, chairman of the US Securities and Exchange Commission, said: “We accused Genesis that failed to register with it before providing its retail crypto loan products to the public, thereby bypassing the basic disclosure requirements designed to protect investors.”” Today’s reconciliation agreement is based on the previous actions, it aims to make it clear to the market and invest in the public.The cryptocurrency lending platform and other intermediaries need to abide by the securities law that we test after time.You can protect investors the best.It promotes market trust.This is not optional.This is the law.”
“The failure of the Gemini Earn plan highlights the unknown risks faced by investors when market participants do not comply with the Federal Securities Law,” said Gurbir S. Grewal, director of the law enforcement department of the US Securities and Exchange Commission.”As shown in this law enforcement operation, any hype or advertisement can not replace investors’ protection disclosure required by the Federal Securities Law.”
On January 12, 2023, the US Securities and Exchange Commission (SEC) put forward allegations to Genesis and Gemini Trust Company, LLC (“Gemini”).According to SEC complaints, Gemini Earn plans to be a so -called investment opportunity. Gemini customers (including American retail investors) lend them their loans.Genesis promises to pay the interest made by GENESIS to use the borrowed encrypted assets.According to the complaint, in November 2022, Genesis announced that Gemini Earn investors withdrew their encrypted assets because Genesis lacked enough liquid assets to meet the withdrawal requests after the crypto asset market fluctuations.At that time, Genesis held approximately $ 900 million crypto assets from 340,000 Gemini Earn investors.
Genesis and two subsidiaries voluntarily submitted Chapter 11 application to the US Bankburgage Court of New York on January 19, 2023.Investors cannot obtain or withdrawn from Gemini Earn to obtain or withdrawn their encrypted assets investing in Genesis.
The US Securities and Exchange Commission filed a lawsuit with the District Court of New York, USA, and accusedGenesis and Gemini violated the 5th (A) and 5 (C) bars of the Securities Law in 1933.Except for the above -mentioned civil penalties, Genesis agreed to make a final judgment without admitting or denied allegations in the SEC complaint to permanently prohibit Genesis from violation of Article 5 of the Securities Law.
The SEC survey was conducted by Jonathan Austin and Ashley Sprague and was supervised by Deborah Tarasevich and Stacy Bogert.The lawsuit of the bankruptcy court was carried out by TheRese Scheuer and William Uptegrove and was supervised by Alisaire Bambach.The court’s lawsuits against Gemini’s areas are led by Edward Reilly and Laura Meehan, and they are supervised by James Connor and Olivia Choe.
