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SEC Charges DCG and Genesis Global Capital for Concealing Information About 3AC in 2022
SEC Charges DCG and Genesis Global Capital for Concealing Information About 3AC in 2022
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The US Securities and Exchange Commission (SEC) has ordered Digital Currency Group (DCG) to pay a $38 million civil fine and comply with a cease-and-desist order to prevent future violations of securities laws. The charges stem from allegations that DCG and its former CEO, Soichiro 'Michael' Moro, misled investors about the financial health of its operations. The SEC's actions are related to the collapse of Three Arrows Capital (3AC), one of Genesis' largest borrowers, in mid-2022. Despite upcoming leadership changes at the SEC, the Gary Gensler administration has pursued these charges against DCG and its subsidiary, Genesis, for alleged negligence in public disclosures and financial maneuvers.
