Genesis Settles Lawsuit over Earn Program with SEC

Genesis Global Holdco, a bankrupt subsidiary of the Digital Currency Group, has agreed to settle a lawsuit brought against them by the Securities and Exchange Commission that was initiated a year ago due to a lending program.

After negotiations between the SEC and GGC, it was determined that Genesis will pay $21 million to the SEC, as stated in a filing submitted to the US.

Bankruptcy Court in the Southern District of New York on January 31st. The settlement will also resolve the Civil Action Claim, eliminate potential risks and expenses, and end the uncertainty of lengthy legal proceedings against the SEC.

The payment of $21 million will only be made once all other allowed claims, such as administrative expenses, secured debts, priority claims, and general unsecured claims, have been paid in full.