In today’s Coin Logic news update, we bring you the latest on two major stories in the cryptocurrency industry: Genesis Global files for bankruptcy and Nexo hit with large fines by the US Securities and Exchange commission for offering a product that was deemed an unregistered security. At Coin Logic, we read the news so you don’t have to, but we do encourage doing your own research.
Genesis Global Files For Bankruptcy
First, let’s take a look at the bankruptcy filing of Genesis Global. According to the filing, the company owes over $3.5 billion to its top 50 creditors, including well-known companies such as Gemini, Cumberland, Mirana, MoonAlpha Finance, and VanEck’s New Finance Income Fund.
Genesis Global cites the cryptocurrency bear market as the reason for its financial struggles. However, it’s important to note that Genesis’ other subsidiaries, such as those involved in derivatives, spot trading, and custody businesses as well as Genesis Global Trading, were not included in the filing and continue to operate. The filing also states that Genesis Global Capital expects there to be money left over to pay unsecured creditors after the restructuring process.
Nexo Ordered To Pay Huge Fine To The US SEC
Next, we turn to the SEC’s settlement with Nexo. The SEC charged that the company raised over $5 million from investors by offering interest-bearing accounts that paid out in its own NEXO token. The SEC argues that these accounts were securities and that by offering them without registering with the SEC, Nexo broke the law.
As part of the settlement, Nexo has agreed to pay $3.6 million in disgorgement and $1.2 million in penalties to the SEC, as well as $150,000 to state regulators. The company has also agreed to register the NEXO token as a security and to comply with all federal and state securities laws in the future.
These stories serve as a reminder that the SEC is closely monitoring the crypto industry and that companies operating in this space should be diligent in complying with all relevant regulations. So if you are starting a business and plan to deal with US customers or deal on US soil, you have to play by the US rules and regulations, whether you want to or not.
At Coin Logic, we strive to keep you informed on the latest news and developments in the cryptocurrency industry, and we encourage you to do your own research as well.
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