Gemini crypto exchange has assured its Earn users that they will receive 100% spot returns on digital assets.

Bankrupt crypto lender Genesis Global agreed to pay a $21 million civil penalty in connection with the now-defunct Gemini Earn lending program, according to a March 19 statement from the U.S. Securities and Exchange Commission (SEC).

Under the terms of the settlement, the SEC will not receive the penalty until Genesis satisfies all bankruptcy claims, including those from Gemini Earn investors.

The resolution, initially reached in January, was a turning point for Genesis, allowing it to turn its attention to ongoing bankruptcy proceedings.

Violation of securities laws

SEC Chairman Gary Gensler said the failed investment scheme bypassed basic disclosure rules designed to protect retail investors.

He added:

“Today’s settlement builds on previous actions to provide clarity to markets and the investing public that crypto lending platforms and other intermediaries need to comply with our time-tested securities laws. This approach helps strengthen trust in the market , this is not an optional requirement, but an obligation that must be observed under the law.”

Gurbir S. Grewal, director of the SEC’s Division of Enforcement, further noted that the collapse of Gemini Earn highlighted “the unknown risks that investors face when market participants fail to comply with federal securities laws.”

Notably, the settlement comes just days after a U.S. court upheld the SEC’s argument that the lender and Gemini cryptocurrency exchange offered and sold securities through the Earn product under the Howey and Reves tests.

Therefore, this fine marks the end of the SEC's lawsuit against the company.

Gemini Earn Progress

Last month, crypto exchange Gemini, led by the Winklevoss brothers, assured its Earn users that they would receive “100% physical return of their digital assets” after reaching an agreement in principle with bankrupt Genesis and other creditors of the insolvent lender.

Additionally, the exchange disclosed a settlement with the New York State Department of Financial Services (NYDFS). Under the terms, Gemini pledged to provide at least $1.1 billion in rebates to customers of its Earn program.

In addition, the exchange will pay a $37 million fine due to previous non-compliance with local regulations. #Genesis #GeminiEarn

熱點：Crypto CRYPTO EARN