Cryptocurrency enterprise capital large Digital Foreign money Group (DCG), which is helmed by “crypto king” Barry Silbert, has been charged by the U.S. Securities and Trade Fee (SEC) has been charged for deceptive traders, in accordance with a Friday submitting.
DCG must pay a $38 million civil cash penalty to the SEC throughout the subsequent 14 days as a part of its settlement cope with the regulator.
It’s value noting that Silbert himself was not named by the SEC.
The SEC acknowledged that the VC behemoth “negligently engaged in conduct that misled traders” with a lending program supplied by Genesis International Capital (GGC), one of many firm’s subsidiaries.
GGC has been accused of producing income by commingling traders’ belongings and lending them to institutional debtors.
After a major borrower (Three Arrows Capital) defaulted on a margin name, DCG downplayed the severity of this improvement.
GCG ended up submitting for chapter in early 2023 after failing to satisfy redemption requests.
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