Michael Moro and Digital Currency Group Settle SEC Charges for $38.5M
Digital Currency Group and its former Genesis CEO Michael Moro will pay a total of $38.5 million to resolve allegations of securities fraud linked to the collapse of Three Arrows Capital.
Summary
Digital Currency Group (DCG) and its former Genesis CEO, Soichoro “Michael” Moro, have agreed to pay $38.5 million to settle securities fraud charges with the U.S. Securities and Exchange Commission (SEC).
Key Points
- DCG will pay $30 million in fines while Moro is liable for $500,000.
- The charges relate to the conduct of DCG and Genesis following the collapse of Three Arrows Capital (3AC) in 2022, which severely impacted Genesis’ financial stability.
- No DCG executives were named in the settlement, with both parties denying any wrongdoing.
In an official statement, a DCG spokesperson shared, "We are pleased to have concluded an extensive investigation process that was limited in its findings..." highlighting DCG's commitment to integrity in business practices.
However, accusations by New York Attorney General Letitia James suggested that DCG and Genesis collaborated to misrepresent their financial status during challenging times. The SEC emphasized the importance of transparency, stating that both DCG and Moro misled investors about Genesis’s financial condition.
This settlement is part of ongoing legal scrutiny, including a civil case where James seeks penalties against DCG amounting to $3 billion.
