The first broker-dealer start-up has been announced recently.
The settlement with Genesis signifies the SEC’s commitment to overseeing crypto lending platforms and safeguarding investor interests.
Genesis now has legal approval to sell $1.6 billion in Grayscale shares, including GBTC and ETHE, even though DCG disagrees.
The motion to liquidate Genesis assets at Grayscale Investment has been supported by Gemini that is seeking to repay the affected Earn Program customers.
Genesis claims that, as market volatility increased, Gemini made significant withdrawal demands that harmed other creditors.
Gemini said that the recent report from New York Post is quite misleading and “pure fantasy”. The exchange added that all the funds belonged to its Earn users.
The bankrupt crypto lender Genesis announced that it would cease all of its crypto operations for spot and derivatives trading, for institutional players as well.
In addition to the partial repayment agreement, DCG has also committed to paying an additional $275 million, disbursed in four installments after the date of the initial partial repayment.
The Digital Currency Group has hinted that they could be making creditor payments for Genesis Global soon and plan to resolve all the claims.
The timing of the IRS’s ruling coincides with increased scrutiny from federal regulators towards crypto-staking services offered by exchanges.
It is expected that both FTX and Genesis will soon file motions with the bankruptcy courts to seek approval of the deal.