Genesis Global Capital has been ordered to pay a $21 million civil penalty in a final court judgment to settle charges related to the Gemini Earn loan program.
Both Genesis and Gemini were accused of conducting an unregistered securities offering when they launched the program, which allowed retail investors to lend cryptocurrencies.
Gary Gensler, chairman of the SEC, stated in a press release on March 19 that this settlement is part of the regulator's efforts to enforce securities laws in the marketplace and protect investors.
The settlement also includes provisions that only allow the SEC to receive a portion of the fine after other payments from the bankruptcy, including claims from retail investors, have been satisfied.