Genesis Global: SEC to get $21 million unsecured claim via settlement

By Sarah Lizee

Olympia, Wash., Feb. 1 – Genesis Global Holdco, LLC is seeking approval of a settlement with the Securities and Exchange Commission, according to a motion filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The settlement aims to resolve the civil action filed by the SEC against the company in the U.S. District Court for the Southern District of New York.

The SEC’s complaint alleges that between February 2021 and November 2022, Genesis and Gemini Trust Co., LLC engaged in an unregistered offer and sale of securities to U.S. retail investors as part of an investment opportunity called the Gemini Earn program.

The deal provides that the SEC will receive an allowed general unsecured claim against Genesis in the amount of $21 million, in full and complete satisfaction of the civil action claim.

The SEC’s claim will be subordinated to all other allowed administrative expenses, secured, priority and general unsecured claims.

“The proposed settlement will, among other benefits to the debtors’ estates, resolve the civil action claim filed by the SEC in these Chapter 11 cases and eliminate the risks, expenses, and uncertainty associated with protracted litigation against the SEC,” the company said in the motion.

Genesis Global is a New York-based cryptocurrency lender that filed bankruptcy on Jan. 19, 2023 under Chapter 11 case number 23-10063.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.