The American authorities filed a lawsuit against Genesis in January 202, a week before the company announced its bankruptcy. The platform was accused of illegal securities trading using the Gemini Earn service, launched in partnership with the Gemini exchange. Traders were offered to lend Genesis digital assets in exchange for a reward.
By settling the dispute out of court, Genesis will be able to save on legal costs and pay attention to the compensation process for its customers and creditors. According to the developed business liquidation plan, Genesis undertakes to return digital assets and fiat currency that were stored in user accounts before the organization went bankrupt. The court hearing, during which this proposal will be considered, will be held on February 14.