{"id":8316,"date":"2025-01-17T19:31:56","date_gmt":"2025-01-17T19:31:56","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=8316"},"modified":"2025-01-17T19:31:56","modified_gmt":"2025-01-17T19:31:56","slug":"dcg-former-genesis-ceo-to-pay-sec-38-5m-to-settle-securities-fraud-charges","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=8316","title":{"rendered":"DCG, Former Genesis CEO to Pay SEC $38.5M to Settle Securities Fraud Charges"},"content":{"rendered":"
\n

Digital Currency Group (DCG) and Soichoro \u201cMichael\u201d Moro, the former CEO of its now-defunct Genesis subsidiary, have agreed to pay a combined $38.5 million in civil penalties to settle securities fraud charges<\/a> with the U.S. Securities and Exchange Commission (SEC).<\/p>\n<\/p>\n

The crypto venture capital firm will bear the brunt of the financial penalty, paying $30 million in fines, while Moro will personally be liable for a $500,000 penalty. In addition to the fines, both DCG<\/a> and Moro<\/a> agreed to a cease-and-desist order. Neither DCG nor Moro admitted to any wrongdoing. Moro is currently the chief strategy officer at INX.<\/p>\n<\/p>\n

The charges stem from DCG and Genesis\u2019 response to the collapse of crypto hedge fund Three Arrows Capital (3AC) \u2013\u00a0Genesis\u2019 second-largest borrower \u2013\u00a0in the summer of 2022, which blew a billion-dollar hole in Genesis\u2019 balance sheet.<\/p>\n<\/p>\n

\u201cWe are pleased to have concluded an extensive investigation process that was limited in its findings and focused on the social media posts and communications made by our former operating subsidiary, Genesis Global Capital,\u201d a spokesperson for DCG told CoinDesk. \u201cDCG has always strived to conduct its business with the highest integrity, and we believe our actions related to Genesis were consistent with that approach.\u201d<\/p>\n<\/p>\n

Regulators, including the New York Attorney General (NYAG) Letitia James, had accused DGC and Genesis, its wholly-owned crypto trading subsidiary, of working together to cover up the enormous hole by falsely claiming that DCG had absorbed Genesis\u2019 losses. What DCG had allegedly done was issue Genesis a promissory note \u2013\u00a0essentially an IOU meant to create the appearance of liquidity \u2013\u00a0pledging to pay Genesis $1.1 billion over the course of 10 years at 1% interest. DCG has denied that the promissory note was a sham.<\/p>\n<\/p>\n

\u201cIt is vital that companies and their officers speak truthfully to the investing public, especially in times of financial instability or turmoil. The Commission found that DCG and Moro fell short in that regard,\u201d said Sanjay Wadhwa, Acting Director of the SEC\u2019s Division of Enforcement, in a Friday statement<\/a>. \u201cRather than being transparent about Genesis\u2019s financial condition and DCG\u2019s efforts to ensure Genesis\u2019s continued operation, DCG and Moro painted a misleadingly rosy picture.\u201d<\/p>\n<\/p>\n

The SEC and the Department of Justice reportedly began investigating DCG in 2023<\/a>. James\u2019 civil case against DCG is ongoing. She is seeking $3 billion in penalties<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Digital Currency Group (DCG) and Soichoro \u201cMichael\u201d Moro, the former CEO of its now-defunct Genesis subsidiary, have agreed to pay a combined $38.5 million in civil penalties to settle securities fraud charges with the U.S. Securities and Exchange Commission (SEC). The crypto venture capital firm will bear the brunt of the financial penalty, paying $30 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-8316","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/8316","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8316"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/8316\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8316"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8316"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8316"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}