The glaring admission of guilt and intention to pay compensation of $21 million by Genesis marks a pivotal moment in their prolonged saga of wrongdoing. Regulators had squarely accused Genesis of selling unregistered securities to retail investors through the Gemini Earn crypto lending program, and now, finally, these offenders must face the consequences.
The New York court’s decision to reject Genesis and Gemini’s motions to dismiss the lawsuit only further underscores the undeniable nature of the SEC’s allegations. The court ruling explicitly states that these enterprises knowingly violated securities laws.
“The global settlement and Genesis’s admission of guilt only reaffirm the correctness of our actions,” declared SEC Chairman Gary Gensler. “It sends a powerful signal to the market and investors: we will not allow any crypto lending platform or digital asset market intermediary to flout established securities laws.”
This scandalous case also underscores the need for vigilance and proper regulation in the blockchain world. Representatives of this industry must adhere to the law, as it is what makes them reliable and respected participants in the global market.