Bankrupt Genesis reaches settlement with SEC over Gemini Earn project

Bankrupt Genesis has agreed to settle a lawsuit filed a year ago by the Securities and Exchange Commission (SEC) over a lending program. Genesis, a subsidiary of Digital Currency Group, agreed to pay the SEC $21 million to end the lawsuit, according to a filing in the U.S. Bankruptcy Court for the Southern District of New York. "The settlement agreement is the product of extensive negotiations between the SEC and GGC. The proposed settlement will provide additional benefits to the Debtors' estates and resolve the SEC's civil litigation claims in these Chapter 11 cases," the filing, dated Jan. 31, reads. , and eliminates the risk, expense and uncertainty associated with lengthy litigation with the SEC." The $21 million will be paid "after payment in full of all other allowable administrative expenses, secured, priority and general unsecured claims," ​​according to court documents.