Genesis, a subsidiary of Digital Currency Group, has reached a $21 million settlement to resolve a lawsuit brought by the SEC over its crypto lending practices. This agreement is a significant step towards resolving the legal challenges faced by Genesis, following its bankruptcy filing last year during the crypto market collapse.
Genesis Reaches $21 Million Settlement to Resolve SEC Lawsuit
Genesis Global Holdco has agreed to pay $21 million to settle a lawsuit filed by the SEC in relation to its crypto lending practices. The SEC accused Genesis of offering and selling unregistered securities through its Gemini Earn program.
The proposed settlement, which was disclosed in a filing with the U.S. Bankruptcy Court for the Southern District of New York, aims to address the civil actions initiated by the SEC. This move comes after a turbulent period for Genesis, which filed for bankruptcy in January 2023 after major crypto entities like Three Arrows Capital and the FTX exchange collapsed.
By agreeing to pay $21 million, Genesis is taking a significant step towards navigating its financial and legal challenges and stabilizing its operations in the volatile crypto market. The settlement is intended to reduce the costs and uncertainties associated with prolonged litigation.
In addition to the SEC settlement, Genesis faces other legal and regulatory issues. The company, along with Genesis Global Trading, recently reached a settlement with the New York State Department of Financial Services (NYDFS), which involved paying an $8 million fine and surrendering its Bitlicense. This settlement reflects serious compliance failures within the company's operations.
These developments come at a time when Genesis is involved in other legal disputes, including allegations of defrauding investors through the Gemini Earn program, as well as internal conflicts complicating its path to recovery.
Despite these challenges, Genesis's efforts to settle its outstanding legal issues demonstrate a commitment to restructuring and stabilizing its operations.
Will Genesis be able to resolve all of its legal troubles and resume its business operations? Share your thoughts and opinions about this subject in the comments section below.
Frequently Asked Questions
Should You Invest in gold for Retirement?
It depends on how much you have saved and if gold was available at the time you started saving. Consider investing in both.
Gold offers potential returns and is therefore a safe investment. Retirement investors will find gold a worthy investment.
Although most investments promise a fixed rate of return, gold is more volatile than others. As a result, its value changes over time.
However, this does not mean that gold should be avoided. It just means that you need to factor in fluctuations to your overall portfolio.
Another benefit to gold is its tangible value. Gold is more convenient than bonds or stocks because it can be stored easily. It's also portable.
You can always access your gold as long as it is kept safe. Physical gold is not subject to storage fees.
Investing in gold can help protect against inflation. As gold prices rise in tandem with other commodities it can be a good hedge against rising cost.
Also, you'll reap the benefits of having some savings invested in something with a stable value. Gold usually rises when the stock market falls.
Gold investment has another advantage: You can sell it anytime. You can easily liquidate your investment, just as with stocks. You don't even have to wait until you retire.
If you do decide to invest in gold, make sure to diversify your holdings. Don't put all your eggs on one basket.
Do not buy too much at one time. Start small, buying only a few ounces. Next, add more as required.
Keep in mind that the goal is not to quickly become wealthy. Instead, the goal here is to build enough wealth to not need to rely upon Social Security benefits.
While gold may not be the best investment, it can be a great addition to any retirement plan.
How Does Gold Perform as an Investment?
Gold's price fluctuates depending on the supply and demand. It is also affected by interest rates.
Because of their limited supply, gold prices can fluctuate. You must also store physical gold somewhere to avoid the risk of it becoming stale.
How much should you have of gold in your portfolio
The amount you make will depend on the amount of capital you have. You can start small by investing $5k-10k. Then as you grow, you could move into an office space and rent out desks, etc. You don't need to worry about paying rent every month. You only pay one month.
It's also important to determine what type business you'll run. My company is a website creator. We charge our clients about $1000-2000 per monthly depending on what they order. You should also consider the expected income from each client when you do this type of thing.
Freelance work is not likely to pay a monthly salary. The project pays freelancers. Therefore, you might only get paid one time every six months.
Decide what kind of income do you want before you calculate how much gold is needed.
I recommend starting with $1k-$2k in gold and working my way up.
Statistics
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
External Links
law.cornell.edu
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement plans
irs.gov
cftc.gov
investopedia.com
- Are You a Good Candidate for a Gold IRA
- What are the Options Types, Spreads, Example, and Risk Metrics
How To
Online buying gold and silver is the best way to purchase it.
Before you can buy gold, it is important to understand its workings. It is a precious metal that is very similar to platinum. It is rare and used as money due to its durability and resistance against corrosion. It is hard to use, so most people prefer jewelry made of it to real bars of gold.
There are two types today of gold coins. One is legal tender while the other is bullion. The legal tender coins are issued for circulation in a country. They usually have denominations such as $1, $5, $10, and so on.
Bullion coins are only minted to be used for investment purposes. Their value increases over time because of inflation.
They aren’t exchangeable in any currency exchange. For example, a person who buys $100 worth or gold gets 100 grams. This gold has a $100 price. The buyer receives 1 gram of gold for every dollar spent.
The next thing you should know when looking to buy gold is where to do it from. There are a few options if you wish to buy gold directly from a dealer. First off, you can go through your local coin shop. You could also look into eBay or other reputable websites. You can also look into buying gold online from private sellers.
Private sellers are individuals who offer to sell gold at retail or wholesale prices. Private sellers typically charge 10% to 15% commission on each transaction. A private seller will usually return less money than a coin shop and eBay. This is a great option for gold investing because you have more control over the item’s price.
An alternative option to buying gold is to buy physical gold. You can store physical gold much more easily than you can with paper certificates. However, it still needs to be safe. To ensure that your physical gold remains safe, you need to secure it in an impenetrable container such as a vault or safety deposit box.
A bank or pawnshop can help you buy gold. A bank can offer you a loan for the amount that you need to buy gold. The pawnshop is a small business that allows customers to borrow money to buy items. Banks tend to charge higher interest rates, while pawnshops are typically lower.
The final option is to ask someone to buy your gold! Selling gold is also easy. A company such as GoldMoney.com can help you set up a simple bank account and get paid immediately.
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By: David Sencil
Title: Genesis Resolves SEC Lawsuit for $21 Million Over Unregistered Securities
Sourced From: news.bitcoin.com/genesis-settles-sec-lawsuit-for-21-million-over-unregistered-securities/
Published Date: Fri, 02 Feb 2024 22:30:35 +0000
