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Outcome of next SEC crypto securities fraud case in 2025?
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DCG and Former Genesis CEO Settle SEC Securities Fraud Charges for $38.5 Million Over Three Arrows Capital Collapse
Jan 17, 2025, 05:23 PM
Digital Currency Group (DCG) and Soichiro 'Michael' Moro, the former CEO of its now-defunct subsidiary Genesis Global Capital, have agreed to pay a combined $38.5 million in civil penalties to settle securities fraud charges brought by the U.S. Securities and Exchange Commission (SEC). The charges are related to their response to the 2022 collapse of crypto hedge fund Three Arrows Capital, which significantly impacted Genesis's financial health. DCG will pay $30 million, while Moro will pay $500,000. Both parties have agreed to a cease-and-desist order without admitting to any wrongdoing. The SEC alleges that DCG and Moro misled investors by downplaying the impact of Three Arrows Capital's default and overstating DCG's support for Genesis, creating a misleadingly positive impression of Genesis's financial condition.
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