Bankrupt Genesis Global Agrees To $21M SEC Settlement Over Lending Program
Portfolio Pulse from Murtuza Merchant
Genesis Global Holdco, a subsidiary of Digital Currency Group and currently in bankruptcy, has agreed to a $21M settlement with the SEC over a lawsuit concerning its lending program. The settlement, resulting from extensive negotiations, aims to resolve the SEC's civil action claim in Genesis's Chapter 11 cases, thereby avoiding the costs and uncertainties of prolonged litigation. This agreement follows Genesis's financial troubles, which began in January 2022 after the collapses of Three Arrows Capital and FTX, leading to its bankruptcy.
February 01, 2024 | 7:34 pm
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Genesis Global's bankruptcy and subsequent $21M SEC settlement over its lending program highlight the financial turmoil following the collapse of FTX, among others.
The mention of FTX (CRYPTO: FTT) in the context of Genesis Global's financial troubles and bankruptcy proceedings suggests a negative impact on FTT's perception and potentially its value. The collapse of FTX is directly linked to the financial instability that led to Genesis's bankruptcy, indicating a negative sentiment towards FTT and associated assets.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 50