CryptoIntelligence 2025-01-18 19:45:36

SEC Charges DCG and Former Genesis CEO Over Misleading Investors

The U.S. Securities and Exchange Commission (SEC) has charged Digital Currency Group (DCG) and former Genesis CEO Soichoro “Michael” Moro with providing misleading information to investors about Genesis’s financial state following the collapse of Three Arrows Capital (3AC). According to a filing dated Jan. 17, DCG and Moro have agreed to pay $38.5 million in civil penalties. DCG is responsible for $38 million, while Moro will pay $500,000. Both parties consented to the penalties without admitting to or denying violations of the Securities Act of 1933. This settlement is the latest development in the legal troubles surrounding Genesis, which filed for Chapter 11 bankruptcy in January 2023 after a 2022 default by its borrower, 3AC. The collapse of 3AC sent shockwaves through the cryptocurrency sector. The now-defunct hedge fund had invested approximately $570 million in 10.9 million locked LUNA tokens before Terra’s ecosystem collapsed in May 2022. This investment lost over 99% of its value, dropping to just $670 by June 2024. The financial impact severely impaired 3AC’s ability to repay loans, affecting its creditors. By June 16, 2022, 3AC failed to meet margin calls, prompting the liquidation of certain positions. On June 27, a British Virgin Islands court ordered the fund to liquidate its assets. The liquidation coincided with Voyager Digital issuing a default notice to 3AC for failing to repay a loan of 15,250 Bitcoin. In the aftermath, former Genesis CEO Michael Moro attempted to reassure investors, stating in July 2022, “We previously stated in June that we mitigated our losses with respect to a large counterparty who failed to meet a margin call.” This settlement marks a critical chapter in the ongoing fallout from 3AC’s collapse and its broader impact on the crypto industry.

La maggior parte ha letto le notizie

Galaxy Digital Taps Fireblocks to Offer Staki...
2025-07-09
Kraken extends xStocks to BNB Chain, betting...
2025-07-09
The Blockchain Group Considers US OTCID Secon...
2025-07-09
Kraken and Backed Expand xStocks Access Throu...
2025-07-09
Report: GMX may have suffered a $40 million h...
2025-07-09
The Graph Brings Real Time Data Streaming to...
2025-07-09
Is ETH Finally Ready to Shoot For $3K? (Ether...
2025-07-09
NVIDIA BECOMES FIRST COMPANY TO HIT $4 TRILLI...
2025-07-09

Notizie correlate

Profitability Rates for Long-Term Bitcoin Investor...
09 Jul 2025
JUST IN! The Price of This Altcoin Listed on Bina...
09 Jul 2025
Bitcoin Price Analysis: BTC Marginally Up As Marke...
09 Jul 2025
Swap SYRUP on StealthEX: Your Gateway to Maple Fin...
09 Jul 2025
Ethereum Shows Potential Bullish Signs Above $2,20...
09 Jul 2025
How To Keep AI Chats Private, Even If You Whisper...
09 Jul 2025

Leggi la dichiarazione di non responsabilità : Tutti i contenuti forniti nel nostro sito Web, i siti con collegamento ipertestuale, le applicazioni associate, i forum, i blog, gli account dei social media e altre piattaforme ("Sito") sono solo per le vostre informazioni generali, procurati da fonti di terze parti. Non rilasciamo alcuna garanzia di alcun tipo in relazione al nostro contenuto, incluso ma non limitato a accuratezza e aggiornamento. Nessuna parte del contenuto che forniamo costituisce consulenza finanziaria, consulenza legale o qualsiasi altra forma di consulenza intesa per la vostra specifica dipendenza per qualsiasi scopo. Qualsiasi uso o affidamento sui nostri contenuti è esclusivamente a proprio rischio e discrezione. Devi condurre la tua ricerca, rivedere, analizzare e verificare i nostri contenuti prima di fare affidamento su di essi. Il trading è un'attività altamente rischiosa che può portare a perdite importanti, pertanto si prega di consultare il proprio consulente finanziario prima di prendere qualsiasi decisione. Nessun contenuto sul nostro sito è pensato per essere una sollecitazione o un'offerta