Breaking news suggests that Genesis, the bankrupt cryptocurrency business that has been in the news recently, has struck a settlement with the SEC over its Earn product.

Genesis, a division of Digital Currency Group, consented to resolve the lawsuit by giving the U.S. Securities and Exchange Commission $21 million in damages.

However, according to paperwork submitted on Wednesday to the New York bankruptcy court, the business won't be required to pay that fine unless it is able to completely reimburse clients and other creditors under Chapter 11.

The deal addresses claims that Genesis unlawfully obtained funds from investors through its Gemini Earn program, which it runs in collaboration with Gemini. The settlement must be approved by a bankruptcy judge.

Customers could lend their digital assets to the joint venture in order to get interest payments; the SEC alleged this amounted to an unregistered securities offering.

Genesis claimed in court filings that the agreement would save money by preventing more SEC lawsuits.

The business claimed that defending against the lawsuit would also cause a great deal of disruption for Genesis and its advisors, who are attempting to get court approval for their debt repayment plan and return as much money as possible to creditors.