Genesis caught on SEC’s 'Terra' radar

Cryptocurrency exchange Genesis has been caught on the SEC's radar for providing loans to the bankrupt Terra. It has been determined that although the SEC issued a call for the delivery of documents related to the lawsuit, no steps have been taken by Genesis yet.

Deadline is October 18

The New York judge overseeing the lawsuit filed by the US Securities and Exchange Commission (SEC) against Terraform Labs has ordered Genesis, which provided digital asset loans to the bankrupt Terra, to comply with a subpoena after it failed to deliver certain documents to the SEC in connection with the case.

It was noted that although the SEC served a subpoena to Genesis and its affiliates on September 12, requesting a response by October 9, no documents were delivered. The final deadline for Genesis to deliver the documents has been set for October 18, 2023. It was noted that the full scope of the subpoena, including the exact documents requested, remains unclear.

On the other hand, the SEC is closely interested in the connection between the billions transferred by Genesis to 3AC and the fraud allegedly committed by Do Kwon and Terraform Labs. Furthermore, given that DCG's extensions have spread throughout the entire sector, it remains unclear what other relevant information might come from Genesis when it is forced to comply with the subpoena.

News Source: 12punto