Analysis Crypto by Thebittimes.Com

The SEC’s civil lawsuit against Barry Silbert-backed Genesis has ended in a mutual settlement amid bankruptcy proceedings for the defunct crypto service provider.  Genesis Global Holdco, a Digital Currency Group (DCG) subsidiary, will pay $21 million in penalties in a lawsuit claiming the company broke securities laws during its lending program in conjunction with crypto exchange Gemini.  According to court filings from a Southern District of New York bankruptcy court, terms of the settlement with the U.S. Securities and Exchange Commission (SEC) allow Genesis to pay its fine after secured and unsecured claims have been dealt with. The document dated Jan. 31 explained that this settlement was born out of extensive negotiations between Genesis and the SEC, which will benefit the debtors’ estates by removing risks attached to a prolonged lawsuit.  You might also like: Court prevents DCG from altering Genesis ownership Last year, the SEC sued Genesis and Gemini for a...

The lawsuit accused DCG and Silbert of committing fraud against the creditors and failing to return their funds. This development comes after Winklevoss put forward the final offer to DCG earlier this week for returning over $1 billion on its customers’ funds. advertisement In its filing, Cameron Winklevoss explains that Gemini was willing to discontinue its Earn product back in October 2022. However, Silbert convinced them to continue with the product despite knowing that Genesis was “massively insolvent”. The Winklevoss twin said that Barry Silbert lied despite major holes in Genesis ’s balance sheet. The troubles for Genesis started during the blowup of Three Arrows Capital (3AC) in June 2022. In his revelation, Cameron writes: When Three Arrows Capital (3AC) collapsed in June 2022, it blew a $1.2 billion hole in Genesis ’s balance sheet. Instead of coming clean, Genesis claimed that everything was business as usual because DCG...