Genesis reaches $21M settlement with SEC over Gemini Earn program
The Genesis legal team proposed a Feb. 14 hearing to recognize the SEC settlement as part of its bankruptcy case.
Bankrupt firm Genesis Global Holdco and its affiliates said they had settled with the United States Securities and Exchange Commission (SEC) for $21 million.
In a Jan. 31 filing in U.S. Bankruptcy Court for the Southern District of New York, Genesis debtors proposed scheduling a hearing on Feb. 14 to enter a motion recognizing a deal between the firm and the SEC. According to the debtors, the SEC will receive $21 million in exchange for settling its civil lawsuit against Genesis over the “unregistered offer and sale of securities” through the Gemini Earn program.
“The Settlement Agreement is the product of extensive negotiations between the SEC and GGC,” said the filing. “The proposed settlement will, among other benefits to the Debtors’ estates, resolve the Civil Action Claim filed by the SEC in these Chapter 11 Cases and eliminate the risks, expenses, and uncertainty associated with protracted litigation against the SEC.”
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