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\n

While this settlement may close one chapter, DCG\u2019s legal troubles are far from over. The ongoing civil case spearheaded by the NYAG<\/a> could impose far greater financial penalties, adding to the firm\u2019s challenges as it navigates a post-3AC landscape.<\/p>\n\n\n\n

<\/p>\n","post_title":"Digital Currency Group To Pay $30M In SEC Settlement, Ex-Genesis CEO Fined","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"digital-currency-group-to-pay-30m-in-sec-settlement-ex-genesis-ceo-fined","to_ping":"","pinged":"","post_modified":"2025-01-26 16:02:46","post_modified_gmt":"2025-01-26 05:02:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=20073","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

The SEC launched its investigation into DCG in 2023, while New York Attorney General Letitia James is pursuing a $3 billion civil case against the crypto firm. James accused DCG and Genesis of collaborating to mask a billion-dollar deficit after 3AC\u2019s collapse. DCG has denied these allegations, insisting the promissory note was a legitimate instrument.<\/p>\n\n\n\n

While this settlement may close one chapter, DCG\u2019s legal troubles are far from over. The ongoing civil case spearheaded by the NYAG<\/a> could impose far greater financial penalties, adding to the firm\u2019s challenges as it navigates a post-3AC landscape.<\/p>\n\n\n\n

<\/p>\n","post_title":"Digital Currency Group To Pay $30M In SEC Settlement, Ex-Genesis CEO Fined","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"digital-currency-group-to-pay-30m-in-sec-settlement-ex-genesis-ceo-fined","to_ping":"","pinged":"","post_modified":"2025-01-26 16:02:46","post_modified_gmt":"2025-01-26 05:02:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=20073","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

\u201cIt is vital that companies and their officers speak truthfully to the investing public, especially in times of financial instability or turmoil. The Commission found that DCG and Moro fell short in that regard,\u201d said Sanjay Wadhwa, Acting Director of the SEC\u2019s Division of Enforcement. \u201cRather than being transparent about Genesis\u2019s financial condition and DCG\u2019s efforts to ensure Genesis\u2019s continued operation, DCG and Moro painted a misleadingly rosy picture.\u201d<\/p>\n\n\n\n

The SEC launched its investigation into DCG in 2023, while New York Attorney General Letitia James is pursuing a $3 billion civil case against the crypto firm. James accused DCG and Genesis of collaborating to mask a billion-dollar deficit after 3AC\u2019s collapse. DCG has denied these allegations, insisting the promissory note was a legitimate instrument.<\/p>\n\n\n\n

While this settlement may close one chapter, DCG\u2019s legal troubles are far from over. The ongoing civil case spearheaded by the NYAG<\/a> could impose far greater financial penalties, adding to the firm\u2019s challenges as it navigates a post-3AC landscape.<\/p>\n\n\n\n

<\/p>\n","post_title":"Digital Currency Group To Pay $30M In SEC Settlement, Ex-Genesis CEO Fined","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"digital-currency-group-to-pay-30m-in-sec-settlement-ex-genesis-ceo-fined","to_ping":"","pinged":"","post_modified":"2025-01-26 16:02:46","post_modified_gmt":"2025-01-26 05:02:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=20073","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Settlement For Alleged Misrepresentation<\/strong><\/p>\n\n\n\n

\u201cIt is vital that companies and their officers speak truthfully to the investing public, especially in times of financial instability or turmoil. The Commission found that DCG and Moro fell short in that regard,\u201d said Sanjay Wadhwa, Acting Director of the SEC\u2019s Division of Enforcement. \u201cRather than being transparent about Genesis\u2019s financial condition and DCG\u2019s efforts to ensure Genesis\u2019s continued operation, DCG and Moro painted a misleadingly rosy picture.\u201d<\/p>\n\n\n\n

The SEC launched its investigation into DCG in 2023, while New York Attorney General Letitia James is pursuing a $3 billion civil case against the crypto firm. James accused DCG and Genesis of collaborating to mask a billion-dollar deficit after 3AC\u2019s collapse. DCG has denied these allegations, insisting the promissory note was a legitimate instrument.<\/p>\n\n\n\n

While this settlement may close one chapter, DCG\u2019s legal troubles are far from over. The ongoing civil case spearheaded by the NYAG<\/a> could impose far greater financial penalties, adding to the firm\u2019s challenges as it navigates a post-3AC landscape.<\/p>\n\n\n\n

<\/p>\n","post_title":"Digital Currency Group To Pay $30M In SEC Settlement, Ex-Genesis CEO Fined","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"digital-currency-group-to-pay-30m-in-sec-settlement-ex-genesis-ceo-fined","to_ping":"","pinged":"","post_modified":"2025-01-26 16:02:46","post_modified_gmt":"2025-01-26 05:02:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=20073","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

See Related: <\/em><\/strong>Crypto Lender Genesis To Return $3B In Bankruptcy Liquidation<\/a><\/p>\n\n\n\n

Settlement For Alleged Misrepresentation<\/strong><\/p>\n\n\n\n

\u201cIt is vital that companies and their officers speak truthfully to the investing public, especially in times of financial instability or turmoil. The Commission found that DCG and Moro fell short in that regard,\u201d said Sanjay Wadhwa, Acting Director of the SEC\u2019s Division of Enforcement. \u201cRather than being transparent about Genesis\u2019s financial condition and DCG\u2019s efforts to ensure Genesis\u2019s continued operation, DCG and Moro painted a misleadingly rosy picture.\u201d<\/p>\n\n\n\n

The SEC launched its investigation into DCG in 2023, while New York Attorney General Letitia James is pursuing a $3 billion civil case against the crypto firm. James accused DCG and Genesis of collaborating to mask a billion-dollar deficit after 3AC\u2019s collapse. DCG has denied these allegations, insisting the promissory note was a legitimate instrument.<\/p>\n\n\n\n

While this settlement may close one chapter, DCG\u2019s legal troubles are far from over. The ongoing civil case spearheaded by the NYAG<\/a> could impose far greater financial penalties, adding to the firm\u2019s challenges as it navigates a post-3AC landscape.<\/p>\n\n\n\n

<\/p>\n","post_title":"Digital Currency Group To Pay $30M In SEC Settlement, Ex-Genesis CEO Fined","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"digital-currency-group-to-pay-30m-in-sec-settlement-ex-genesis-ceo-fined","to_ping":"","pinged":"","post_modified":"2025-01-26 16:02:46","post_modified_gmt":"2025-01-26 05:02:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=20073","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

The charges center on their handling of the financial void created by 3AC's downfall, which was Genesis\u2019 second-largest borrower. Regulators accused DCG of obscuring the losses by issuing Genesis a promissory note; a move critics labeled a deceptive attempt to project liquidity.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Crypto Lender Genesis To Return $3B In Bankruptcy Liquidation<\/a><\/p>\n\n\n\n

Settlement For Alleged Misrepresentation<\/strong><\/p>\n\n\n\n

\u201cIt is vital that companies and their officers speak truthfully to the investing public, especially in times of financial instability or turmoil. The Commission found that DCG and Moro fell short in that regard,\u201d said Sanjay Wadhwa, Acting Director of the SEC\u2019s Division of Enforcement. \u201cRather than being transparent about Genesis\u2019s financial condition and DCG\u2019s efforts to ensure Genesis\u2019s continued operation, DCG and Moro painted a misleadingly rosy picture.\u201d<\/p>\n\n\n\n

The SEC launched its investigation into DCG in 2023, while New York Attorney General Letitia James is pursuing a $3 billion civil case against the crypto firm. James accused DCG and Genesis of collaborating to mask a billion-dollar deficit after 3AC\u2019s collapse. DCG has denied these allegations, insisting the promissory note was a legitimate instrument.<\/p>\n\n\n\n

While this settlement may close one chapter, DCG\u2019s legal troubles are far from over. The ongoing civil case spearheaded by the NYAG<\/a> could impose far greater financial penalties, adding to the firm\u2019s challenges as it navigates a post-3AC landscape.<\/p>\n\n\n\n

<\/p>\n","post_title":"Digital Currency Group To Pay $30M In SEC Settlement, Ex-Genesis CEO Fined","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"digital-currency-group-to-pay-30m-in-sec-settlement-ex-genesis-ceo-fined","to_ping":"","pinged":"","post_modified":"2025-01-26 16:02:46","post_modified_gmt":"2025-01-26 05:02:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=20073","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

According to an announcement<\/a> by the regulator, DCG and Soichoro \"Michael\" Moro, former CEO of Genesis, have agreed to pay civil penalties to settle charges of securities fraud. DCG will shoulder $30 million, while Moro, now the chief strategy officer at INX, faces a $500,000 fine. Both parties consented to a cease-and-desist order but admitted no wrongdoing.<\/p>\n\n\n\n

The charges center on their handling of the financial void created by 3AC's downfall, which was Genesis\u2019 second-largest borrower. Regulators accused DCG of obscuring the losses by issuing Genesis a promissory note; a move critics labeled a deceptive attempt to project liquidity.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Crypto Lender Genesis To Return $3B In Bankruptcy Liquidation<\/a><\/p>\n\n\n\n

Settlement For Alleged Misrepresentation<\/strong><\/p>\n\n\n\n

\u201cIt is vital that companies and their officers speak truthfully to the investing public, especially in times of financial instability or turmoil. The Commission found that DCG and Moro fell short in that regard,\u201d said Sanjay Wadhwa, Acting Director of the SEC\u2019s Division of Enforcement. \u201cRather than being transparent about Genesis\u2019s financial condition and DCG\u2019s efforts to ensure Genesis\u2019s continued operation, DCG and Moro painted a misleadingly rosy picture.\u201d<\/p>\n\n\n\n

The SEC launched its investigation into DCG in 2023, while New York Attorney General Letitia James is pursuing a $3 billion civil case against the crypto firm. James accused DCG and Genesis of collaborating to mask a billion-dollar deficit after 3AC\u2019s collapse. DCG has denied these allegations, insisting the promissory note was a legitimate instrument.<\/p>\n\n\n\n

While this settlement may close one chapter, DCG\u2019s legal troubles are far from over. The ongoing civil case spearheaded by the NYAG<\/a> could impose far greater financial penalties, adding to the firm\u2019s challenges as it navigates a post-3AC landscape.<\/p>\n\n\n\n

<\/p>\n","post_title":"Digital Currency Group To Pay $30M In SEC Settlement, Ex-Genesis CEO Fined","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"digital-currency-group-to-pay-30m-in-sec-settlement-ex-genesis-ceo-fined","to_ping":"","pinged":"","post_modified":"2025-01-26 16:02:46","post_modified_gmt":"2025-01-26 05:02:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=20073","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Digital Currency Group (DCG) and its former Genesis subsidiary are once again under the spotlight. A $38.5 million settlement with the U.S. Securities and Exchange Commission (SEC) reveals the costly aftermath of their response to the collapse of Three Arrows Capital (3AC) in 2022.<\/p>\n\n\n\n

According to an announcement<\/a> by the regulator, DCG and Soichoro \"Michael\" Moro, former CEO of Genesis, have agreed to pay civil penalties to settle charges of securities fraud. DCG will shoulder $30 million, while Moro, now the chief strategy officer at INX, faces a $500,000 fine. Both parties consented to a cease-and-desist order but admitted no wrongdoing.<\/p>\n\n\n\n

The charges center on their handling of the financial void created by 3AC's downfall, which was Genesis\u2019 second-largest borrower. Regulators accused DCG of obscuring the losses by issuing Genesis a promissory note; a move critics labeled a deceptive attempt to project liquidity.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Crypto Lender Genesis To Return $3B In Bankruptcy Liquidation<\/a><\/p>\n\n\n\n

Settlement For Alleged Misrepresentation<\/strong><\/p>\n\n\n\n

\u201cIt is vital that companies and their officers speak truthfully to the investing public, especially in times of financial instability or turmoil. The Commission found that DCG and Moro fell short in that regard,\u201d said Sanjay Wadhwa, Acting Director of the SEC\u2019s Division of Enforcement. \u201cRather than being transparent about Genesis\u2019s financial condition and DCG\u2019s efforts to ensure Genesis\u2019s continued operation, DCG and Moro painted a misleadingly rosy picture.\u201d<\/p>\n\n\n\n

The SEC launched its investigation into DCG in 2023, while New York Attorney General Letitia James is pursuing a $3 billion civil case against the crypto firm. James accused DCG and Genesis of collaborating to mask a billion-dollar deficit after 3AC\u2019s collapse. DCG has denied these allegations, insisting the promissory note was a legitimate instrument.<\/p>\n\n\n\n

While this settlement may close one chapter, DCG\u2019s legal troubles are far from over. The ongoing civil case spearheaded by the NYAG<\/a> could impose far greater financial penalties, adding to the firm\u2019s challenges as it navigates a post-3AC landscape.<\/p>\n\n\n\n

<\/p>\n","post_title":"Digital Currency Group To Pay $30M In SEC Settlement, Ex-Genesis CEO Fined","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"digital-currency-group-to-pay-30m-in-sec-settlement-ex-genesis-ceo-fined","to_ping":"","pinged":"","post_modified":"2025-01-26 16:02:46","post_modified_gmt":"2025-01-26 05:02:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=20073","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n
  • DCG agreed to pay $30 million in civil penalties, while Soichoro \"Michael\" Moro, Genesis's former CEO, will pay a $500,000 fine.<\/li>\n<\/ul>\n\n\n\n

    Digital Currency Group (DCG) and its former Genesis subsidiary are once again under the spotlight. A $38.5 million settlement with the U.S. Securities and Exchange Commission (SEC) reveals the costly aftermath of their response to the collapse of Three Arrows Capital (3AC) in 2022.<\/p>\n\n\n\n

    According to an announcement<\/a> by the regulator, DCG and Soichoro \"Michael\" Moro, former CEO of Genesis, have agreed to pay civil penalties to settle charges of securities fraud. DCG will shoulder $30 million, while Moro, now the chief strategy officer at INX, faces a $500,000 fine. Both parties consented to a cease-and-desist order but admitted no wrongdoing.<\/p>\n\n\n\n

    The charges center on their handling of the financial void created by 3AC's downfall, which was Genesis\u2019 second-largest borrower. Regulators accused DCG of obscuring the losses by issuing Genesis a promissory note; a move critics labeled a deceptive attempt to project liquidity.<\/p>\n\n\n\n

    See Related: <\/em><\/strong>Crypto Lender Genesis To Return $3B In Bankruptcy Liquidation<\/a><\/p>\n\n\n\n

    Settlement For Alleged Misrepresentation<\/strong><\/p>\n\n\n\n

    \u201cIt is vital that companies and their officers speak truthfully to the investing public, especially in times of financial instability or turmoil. The Commission found that DCG and Moro fell short in that regard,\u201d said Sanjay Wadhwa, Acting Director of the SEC\u2019s Division of Enforcement. \u201cRather than being transparent about Genesis\u2019s financial condition and DCG\u2019s efforts to ensure Genesis\u2019s continued operation, DCG and Moro painted a misleadingly rosy picture.\u201d<\/p>\n\n\n\n

    The SEC launched its investigation into DCG in 2023, while New York Attorney General Letitia James is pursuing a $3 billion civil case against the crypto firm. James accused DCG and Genesis of collaborating to mask a billion-dollar deficit after 3AC\u2019s collapse. DCG has denied these allegations, insisting the promissory note was a legitimate instrument.<\/p>\n\n\n\n

    While this settlement may close one chapter, DCG\u2019s legal troubles are far from over. The ongoing civil case spearheaded by the NYAG<\/a> could impose far greater financial penalties, adding to the firm\u2019s challenges as it navigates a post-3AC landscape.<\/p>\n\n\n\n

    <\/p>\n","post_title":"Digital Currency Group To Pay $30M In SEC Settlement, Ex-Genesis CEO Fined","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"digital-currency-group-to-pay-30m-in-sec-settlement-ex-genesis-ceo-fined","to_ping":"","pinged":"","post_modified":"2025-01-26 16:02:46","post_modified_gmt":"2025-01-26 05:02:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=20073","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

    Most Read

    Subscribe To Our Newsletter

    By subscribing, you agree with our privacy and terms.

    Follow The Distributed

    Twitter Instagram Youtube LinkedIn Facebook RSS
    ADVERTISEMENT
    \n
  • The SEC's charges focused on DCG and Genesis' alleged misrepresentation to obscure losses caused by the 3AC collapse.<\/li>\n\n\n\n
  • DCG agreed to pay $30 million in civil penalties, while Soichoro \"Michael\" Moro, Genesis's former CEO, will pay a $500,000 fine.<\/li>\n<\/ul>\n\n\n\n

    Digital Currency Group (DCG) and its former Genesis subsidiary are once again under the spotlight. A $38.5 million settlement with the U.S. Securities and Exchange Commission (SEC) reveals the costly aftermath of their response to the collapse of Three Arrows Capital (3AC) in 2022.<\/p>\n\n\n\n

    According to an announcement<\/a> by the regulator, DCG and Soichoro \"Michael\" Moro, former CEO of Genesis, have agreed to pay civil penalties to settle charges of securities fraud. DCG will shoulder $30 million, while Moro, now the chief strategy officer at INX, faces a $500,000 fine. Both parties consented to a cease-and-desist order but admitted no wrongdoing.<\/p>\n\n\n\n

    The charges center on their handling of the financial void created by 3AC's downfall, which was Genesis\u2019 second-largest borrower. Regulators accused DCG of obscuring the losses by issuing Genesis a promissory note; a move critics labeled a deceptive attempt to project liquidity.<\/p>\n\n\n\n

    See Related: <\/em><\/strong>Crypto Lender Genesis To Return $3B In Bankruptcy Liquidation<\/a><\/p>\n\n\n\n

    Settlement For Alleged Misrepresentation<\/strong><\/p>\n\n\n\n

    \u201cIt is vital that companies and their officers speak truthfully to the investing public, especially in times of financial instability or turmoil. The Commission found that DCG and Moro fell short in that regard,\u201d said Sanjay Wadhwa, Acting Director of the SEC\u2019s Division of Enforcement. \u201cRather than being transparent about Genesis\u2019s financial condition and DCG\u2019s efforts to ensure Genesis\u2019s continued operation, DCG and Moro painted a misleadingly rosy picture.\u201d<\/p>\n\n\n\n

    The SEC launched its investigation into DCG in 2023, while New York Attorney General Letitia James is pursuing a $3 billion civil case against the crypto firm. James accused DCG and Genesis of collaborating to mask a billion-dollar deficit after 3AC\u2019s collapse. DCG has denied these allegations, insisting the promissory note was a legitimate instrument.<\/p>\n\n\n\n

    While this settlement may close one chapter, DCG\u2019s legal troubles are far from over. The ongoing civil case spearheaded by the NYAG<\/a> could impose far greater financial penalties, adding to the firm\u2019s challenges as it navigates a post-3AC landscape.<\/p>\n\n\n\n

    <\/p>\n","post_title":"Digital Currency Group To Pay $30M In SEC Settlement, Ex-Genesis CEO Fined","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"digital-currency-group-to-pay-30m-in-sec-settlement-ex-genesis-ceo-fined","to_ping":"","pinged":"","post_modified":"2025-01-26 16:02:46","post_modified_gmt":"2025-01-26 05:02:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=20073","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

    Most Read

    Subscribe To Our Newsletter

    By subscribing, you agree with our privacy and terms.

    Follow The Distributed

    Twitter Instagram Youtube LinkedIn Facebook RSS
    ADVERTISEMENT
    \n
      \n
    • The SEC's charges focused on DCG and Genesis' alleged misrepresentation to obscure losses caused by the 3AC collapse.<\/li>\n\n\n\n
    • DCG agreed to pay $30 million in civil penalties, while Soichoro \"Michael\" Moro, Genesis's former CEO, will pay a $500,000 fine.<\/li>\n<\/ul>\n\n\n\n

      Digital Currency Group (DCG) and its former Genesis subsidiary are once again under the spotlight. A $38.5 million settlement with the U.S. Securities and Exchange Commission (SEC) reveals the costly aftermath of their response to the collapse of Three Arrows Capital (3AC) in 2022.<\/p>\n\n\n\n

      According to an announcement<\/a> by the regulator, DCG and Soichoro \"Michael\" Moro, former CEO of Genesis, have agreed to pay civil penalties to settle charges of securities fraud. DCG will shoulder $30 million, while Moro, now the chief strategy officer at INX, faces a $500,000 fine. Both parties consented to a cease-and-desist order but admitted no wrongdoing.<\/p>\n\n\n\n

      The charges center on their handling of the financial void created by 3AC's downfall, which was Genesis\u2019 second-largest borrower. Regulators accused DCG of obscuring the losses by issuing Genesis a promissory note; a move critics labeled a deceptive attempt to project liquidity.<\/p>\n\n\n\n

      See Related: <\/em><\/strong>Crypto Lender Genesis To Return $3B In Bankruptcy Liquidation<\/a><\/p>\n\n\n\n

      Settlement For Alleged Misrepresentation<\/strong><\/p>\n\n\n\n

      \u201cIt is vital that companies and their officers speak truthfully to the investing public, especially in times of financial instability or turmoil. The Commission found that DCG and Moro fell short in that regard,\u201d said Sanjay Wadhwa, Acting Director of the SEC\u2019s Division of Enforcement. \u201cRather than being transparent about Genesis\u2019s financial condition and DCG\u2019s efforts to ensure Genesis\u2019s continued operation, DCG and Moro painted a misleadingly rosy picture.\u201d<\/p>\n\n\n\n

      The SEC launched its investigation into DCG in 2023, while New York Attorney General Letitia James is pursuing a $3 billion civil case against the crypto firm. James accused DCG and Genesis of collaborating to mask a billion-dollar deficit after 3AC\u2019s collapse. DCG has denied these allegations, insisting the promissory note was a legitimate instrument.<\/p>\n\n\n\n

      While this settlement may close one chapter, DCG\u2019s legal troubles are far from over. The ongoing civil case spearheaded by the NYAG<\/a> could impose far greater financial penalties, adding to the firm\u2019s challenges as it navigates a post-3AC landscape.<\/p>\n\n\n\n

      <\/p>\n","post_title":"Digital Currency Group To Pay $30M In SEC Settlement, Ex-Genesis CEO Fined","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"digital-currency-group-to-pay-30m-in-sec-settlement-ex-genesis-ceo-fined","to_ping":"","pinged":"","post_modified":"2025-01-26 16:02:46","post_modified_gmt":"2025-01-26 05:02:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=20073","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

      Most Read

      Subscribe To Our Newsletter

      By subscribing, you agree with our privacy and terms.

      Follow The Distributed

      Twitter Instagram Youtube LinkedIn Facebook RSS
      ADVERTISEMENT

      DCG

      Most Read

      Subscribe To Our Newsletter

      By subscribing, you agree with our privacy and terms.

      Follow The Distributed

      Twitter Instagram Youtube LinkedIn Facebook RSS
      ADVERTISEMENT
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