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Genesis hit with $21 million penalty

Genesis has agreed to a final judgement with the Securities and Exchange Commission over its Gemini Earn product. The judgement follows charges by the SEC that the company had engaged in the unregistered offer and sale of securities through Gemini Earn, which is a crypto asset lending program.

The settlement amounts to a $21 million civil penalty, along with a permanent injunction.

The good news for investors however, is that the SEC will not receive any funds from the settlement until after all other allowed claims are settled in the bankruptcy court, which includes claims by retail investor claims.

You can read more on the matter here.

What’s going on?

• Ukrainian Drones Are Causing Trouble at Russia’s Oil Refineries (theDeepDive)

• Hong Kong Passes New Security Bill Cementing China’s Control (Bloomberg)

• Trump Can’t Cover His $464 Million Appeal Bond, And It Appears No One Else Wants To (theDeepDive)

• Meta offers to almost halve Facebook and Instagram monthly fees (Reuters)

• RCMP Warns of Potential Unrest as Living Standards Decline Across Canada (theDeepDive)

• Ben & Jerry’s Owner Loses Its Taste for Ice Cream (WSJ)

• Is Turkey’s Currency About to Collapse? (theDeepDive)

• Business insolvencies climb 41% and could get worse, report suggests (BNN)

• Investors, Economists Split on Whether BOJ Will Raise Rates Again (Bloomberg)

• NAR’s Settlement Deal Dismantles 6% Realtor Commission Structure (theDeepDive)

What’s the latest?

• Inflation Falls: Canada's inflation rate dropped to 2.8% in February, defying expectations of an increase and marking a decrease from January's 2.9%. This decline was influenced by significant reductions in cellular and internet service costs and a deceleration in grocery price growth.

• Insolvencies Surge: The fourth quarter of 2023 saw a significant increase in business insolvencies in Canada, with a 41.4% rise compared to the same period in 2022, according to Equifax’s Quarterly Business Credit Trends Report. This increase reflects a broader trend of growing financial strain on businesses, which has seen insolvencies surge by 30.3% since 2019.

• Bitcoin Slump: Bitcoin has experienced a significant downturn, losing over $10,000 from its all-time high last week, now trading around $62,749.99. This drop in Bitcoin's value has also affected other cryptocurrencies, with Ether, Solana, Dogecoin, and XRP seeing declines in their values. The slump extends to crypto-related stocks like MicroStrategy and Coinbase, as well as major mining stocks.

• Nordstrom Go-Private: The Nordstrom family is exploring the possibility of taking Nordstrom Inc private again, six years after a previous attempt did not succeed. Amid challenging times for U.S. retailers due to decreased consumer spending, inflation, and high interest rates, Nordstrom has engaged Morgan Stanley and Centerview Partners to assess interest from private equity firms for a potential buyout. The company previously rejected an $8.4 billion offer to go private in 2018, considering it insufficient.

• Pharma Merger: AstraZeneca Plc has announced a significant acquisition of Fusion Pharmaceuticals Inc. for up to US$2.4 billion, signaling a major move in the pharmaceutical industry's ongoing interest in innovative biotech firms. The deal includes a $2 billion cash payment and an additional $400 million contingent on achieving specific milestones, representing a 126% premium over Fusion's last closing price.

Searching for gold and uranium in Saskatchewan

The stock market and stuff

• Genesis Hit With $21 Million Civil Penalty Over Gemini Earn, Payment To Come After Retail Investors Paid Back (theDeepDive)

• MicroStrategy shares fall 13% after convertible deal for bitcoin purchases (Reuters)

• Bitcoin slumps below $63,000 after topping a record $73,000 last week (Bloomberg)

• Nordstrom shares jump more than 10% on report retailer is trying to go private (CNBC)

In the juniors

• Defense Metals Begins To Source Funding For Wicheeda Rare Earths Project (theDeepDive)

• K92 Mining suspends operations at Papua New Guinea mine after worker death (SA)

• Nexus Uranium To Earn Up To 75% Interest In Cree East Property Under $32 Million Option Agreement (theDeepDive)

FULL DISCLOSURE: Lithium Chile is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Lithium Chile. The author has been compensated to cover Lithium Chile on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.