Firm Agrees to Pay Fine Over Misleading Investors About Genesis Collapse
Highlights:
- $38 Million Fine: Digital Currency Group agrees to pay $38 million to settle SEC charges.
- Misleading Investors: Accused of misleading investors about Genesis Global Capital’s financial health.
- Negligence Allegations: SEC claims DCG downplayed the impact of a major borrower’s default.
Summarized Story:
Digital Currency Group (DCG) has agreed to pay $38 million to settle charges from the U.S. Securities and Exchange Commission (SEC) over allegations of misleading investors about the financial health of its subsidiary, Genesis Global Capital.
The SEC accused DCG of negligence and making false statements about the impact of a default by one of Genesis’s largest borrowers, Three Arrows Capital. DCG did not admit or deny the SEC’s findings but agreed to a cease-and-desist order and the payment of civil penalties.
