The US Securities and Exchange Commission announced on Friday that Digital Currency Group Inc. and the former CEO of its subsidiary, Genesis Global Capital LLC, have agreed to pay a combined penalty of $38M to settle allegations of misleading investors about the financial state of Genesis.
According to regulators, the companies and CEO Soichoro Moro downplayed the impact of a default by borrower Three Arrow Capital in mid-2022.
The SEC found that Moro made false or misleading statements on Twitter, known as X, about Genesis’s balance sheet, with other executives also retweeting some of these statements.
Neither the company nor Moro admitted or denied the SEC’s findings. Moro’s lawyer, Marcus Asner, stated that the executive is pleased to resolve the matter and played a role in guiding Genesis through a time of market volatility, striving to provide truthful and accurate updates.
