DCG and Former Genesis CEO Reach $38.5M Settlement with SEC Over Securities Fraud Charges
The charges stem from DCG and Genesis’ response to the 2022 collapse of crypto hedge fund Three Arrows Capital.
DCG and its former CEO of Genesis have agreed to pay a settlement of $38.5 million to the Securities and Exchange Commission (SEC) to resolve securities fraud charges. The case traces back to the aftermath of the 2022 collapse of the crypto hedge fund Three Arrows Capital, which prompted scrutiny into the actions of the involved parties.
The settlement amount represents a significant agreement in the crypto industry, highlighting the repercussions of alleged fraudulent activities. Both DCG and the former Genesis CEO have not admitted or denied the charges but have chosen to settle to put an end to the legal proceedings.
The SEC's enforcement action sheds light on the importance of transparency and compliance within the rapidly evolving crypto space. As regulatory authorities continue to monitor the industry closely, such settlements underscore the consequences of misconduct and non-compliance with securities laws.