After a difficult couple of years during which the SEC conducted an exhaustive investigation into GenesisAI's business and public disclosures, GenesisAI and its former CEO, Archil Cheishvili resolved a civil SEC case alleging negligence with respect to certain disclosures. Importantly, the SEC did not allege any intentional, deliberate disclosure failures by anyone. The gist of the SEC allegations is that some disclosures could have been more comprehensive and could have provided more context. GenesisAI and Mr. Cheishvili neither admit nor deny the SEC's allegations.
We take the SEC's allegations very seriously. That said, GenesisAI was a startup in a very competitive space, and we did the very best we could to get it off the ground, grow, and be competitive. But as we've maintained from day one, we always acted in good faith, and it means a great deal that after a thorough investigation, the SEC's allegations are limited to negligence and nothing else.
“This process has taken a real toll, personally, emotionally, and professionally,” said former CEO Archi Cheishvili. “GenesisAI was a business we believed in deeply. As many of you know, we started in late 2018. We worked very hard, weathered COVID, and persevered in the face of long odds and stiff competition with determination and fairness. The noise along the way – from those who had their own reasons to see us fail – was hard, but it never changed how hard we worked or how optimistic we were.”
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