- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2024-03-19T17:53:00
Crypto firm Genesis Global Capital agreed to pay a $21 million civil penalty to the Securities and Exchange Commission (SEC) to settle charges that the Gemini Earn investment program was an unregistered security offering.
The settlement, filed Monday in U.S. District Court for the Southern District of New York, said the SEC penalty will be treated as an unsecured claim in Genesis’s bankruptcy case. The agency said in a press release it will not receive any portion of the penalty until the company settles its bankruptcy claims.
The SEC sued Genesis in January 2023, alleging the company and Gemini raised “billions of dollars’ worth of crypto assets from hundreds of thousands of investors” with Gemini Earn. The program allegedly constituted the offering and sale of a security but was not registered with the SEC, a violation of federal securities law.
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The New York State Department of Financial Services fined cryptocurrency exchange Gemini Trust Company $37 million over alleged compliance failures related to lapses in safety and soundness.
Virtual currency brokerage firm Genesis Global Trading agreed to pay an $8 million penalty levied by the New York State Department of Financial Services for alleged compliance failures that left it vulnerable to illicit activity and cybersecurity threats.
The Securities and Exchange Commission accused two cryptocurrency firms, Genesis Global Capital and Gemini Trust Company, with selling a crypto lending product to investors as an unregistered security.
Purported “testimonial and review” service Rytr agreed to stop selling its program that used artificial intelligence to create fake content as part of a consent order with the Federal Trade Commission.
Bank of America avoided a monetary penalty in agreeing to settle charges with the Treasury Department’s Office of the Comptroller of the Currency but was ordered to shore up previously disclosed deficiencies in its Bank Secrecy Act/anti-money laundering (BSA/AML) and sanctions compliance programs.
Aviation maintenance services provider AAR Corp. will pay nearly $56 million to settle charges that it violated the Foreign Corrupt Practices Act when it paid bribes to government officials in Nepal and South Africa.
