SEC issues fine to Digital Currency Group
The US Securities and Exchange Commission (SEC) recently took action concerning Digital Currency Group (DCG) and former Genesis CEO Soichoro “Michael” Moro for allegedly furnishing investors with misleading information concerning Genesis’ financial state following Three Arrows Capital (3AC) bankruptcy. Filing on January 17th, the SEC disclosed that DCG and Moro have agreed to pay a combined sum of $38.5 million in civil penalties, with DCG being accountable for $38 million and Moro for $500,000. Interestingly, both parties have settled the matter without acknowledging or denying any breach of the Securities Act of 1933. This development marks the most recent turn in the ongoing legal dispute surrounding Genesis, which submitted for Chapter 11 bankruptcy back in January 2023 due to 3AC’s default in 2022. The demise of 3AC had an extensive ripple effect on the crypto domain, impacting all cryptocurrency entities linked to the now-defunct hedge fund.
