The US Securities and Exchange Commission (SEC) has taken action against Digital Currency Group (DCG) and former Genesis CEO Soichoro "Michael" Moro for allegedly providing false information to investors about Genesis' financial condition following the bankruptcy of Three Arrows Capital (3AC).
The SEC filing on January 17 revealed that DCG and Moro have agreed to pay a total of $38.5 million in civil penalties, with DCG liable for $38 million and Moro for $500,000.
Both parties have reached this agreement without admitting or denying any violations of the Securities Act of 1933.
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This settlement is the latest development in the legal case of Genesis, which filed for Chapter 11 bankruptcy in January 2023 due to 3AC's default in 2022.
The collapse of 3AC had a widespread impact on the crypto industry, affecting all cryptocurrency companies connected to the now-defunct hedge fund.