Crypto Lender Genesis Files for Bankruptcy Following SEC Lawsuit – Featured Bitcoin News
As an affiliate, we may earn from qualifying purchases. We get commissions for purchases made through links on this website.
Receive $10 in Bitcoin when you buy or sell $100 or more on Coinbase! https://mathisenmarketing.com/coinbase
Genesis Global Trading, one of the most prominent cryptocurrency lending platforms, has filed for bankruptcy following a lawsuit from the U.S. Securities and Exchange Commission (SEC).
The SEC alleged that Genesis had violated U.S. securities laws by operating unregistered broker-dealer activities in the crypto market. The company is now seeking Chapter 11 bankruptcy protection in a Delaware court.
Genesis was founded in 2013 and quickly rose to become one of the largest crypto lenders in the world. The company offered a range of services, including margin trading, spot trading, and over-the-counter (OTC) trading. It was also one of the few crypto lenders to offer loans to institutional investors.
The SEC’s lawsuit alleged that Genesis had failed to register as a broker-dealer before offering its services. The regulator also claimed that the company had failed to take steps to prevent money laundering and other illicit activities.
The SEC’s complaint further alleged that Genesis had failed to maintain adequate books and records and had not conducted adequate due diligence on its customers.
In a statement, the SEC said it was “seeking to protect investors by ensuring that those who offer trading in digital assets register with the SEC, comply with applicable laws, and take steps to protect investors.”
The SEC’s action against Genesis marks the latest in a series of regulatory actions against crypto companies. The SEC has previously taken action against Ripple, Telegram, and Block.one, among others.
The SEC’s action against Genesis is likely to have far-reaching implications for the crypto lending industry. It may lead to increased scrutiny of the industry, as well as greater compliance requirements for crypto lenders.
It also highlights the need for crypto companies to be compliant with U.S. securities laws. Failure to do so could result in costly legal proceedings, as well as potential sanctions from the SEC.
Receive $10 in Bitcoin when you buy or sell $100 or more on Coinbase! https://mathisenmarketing.com/coinbase
Source link
