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The U.S. Securities and Exchange Commission (SEC) is hitting venture capitalist firm Digital Currency Group (DCG) and a former executive of Genesis with a multimillion-dollar fine, claiming they misled investors. The regulatory agency says it’s slapping DCG and Soichiro “Michael” Moro – the former chief executive of crypto lending firm Genesis, a subsidiary of DCG – with a combined fine of $38.5 million for misleading investors about Genesis’ financial stability. According to the SEC, DCG and Moro allegedly lied about the financial health of Genesis when a borrower of theirs, Three Arrows Capital (3AC), defaulted on a massive margin call in June of 2022. The SEC says both Moro and DCG heavily downplayed the impact of the default, which was about a $1 billion loss. Furthermore, Moro was found to make false or misleading statements on his Twitter account, characterizing the firm’s balance sheet as strong and claiming that Genesis had “adequate capital to operate” after falsely claiming to have entered into a deal with DCG. As stated by the regulatory body in its court filings, “In mid-June 2022, a large borrower defaulted on a margin call, which compromised [Genesis’] business. Yet, Digital Currency Group negligently engaged in conduct that misleadingly downplayed the impact of that default and overstated what Digital Currency Group did to help [Genesis] in the aftermath.” Genesis went on to halt customer withdrawals in November of 2022 and file for bankruptcy in January of 2023. As stated by Sanjay Wadhwa, Acting Director of the SEC’s Division of Enforcement, in the press release, “It 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. Rather than being transparent about Genesis’s financial condition and DCG’s efforts to ensure Genesis’s continued operation, DCG and Moro painted a misleadingly rosy picture.” While DCG and Moro have agreed to pay the fines, they didn’t admit to or deny any of the SEC’s findings. Don`t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox Check Price Action Follow us on X , Facebook and Telegram Surf The Daily Hodl Mix Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing. The post SEC Slaps Digital Currency Group With $38,000,000 Fine, Claims Crypto Venture Firm Misled Investors appeared first on The Daily Hodl .
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Bitcoin Reenters $105,000 Territory Amid Mounting Excitement For New Crypto-Friendly Era Ahead Of Trump’s Inauguration
After a rough start to the week, the Bitcoin price soared past the $100,000 psychological milestone on Friday and briefly hopped back above $105,000, spurred by optimism as investors prepare for pro-crypto President-elect Donald Trump to assume control of the White House on Monday. Bitcoin Price Briefly Tops $105K After the latest market meltdown, the Bitcoin price has breached the six-figure realm, signaling that the bulls are now in command. The largest and oldest crypto asset gained over 4% in the last 24 hours, rising from just under $90,000 on Jan. 13 to a price of $105,850, according to CoinGecko data. BTC has since cooled to $104,114 as of publication time. Nevertheless, the asset is just 3.5% away from its current all-time high price of $108,135, set in December 2024. Trump’s Swearing-In Is Only Days Away Expectations among crypto market observers are increasing as Donald Trump’s inauguration as the 47th president of the United States on Jan. 20 draws closer. Many anticipate that Trump will implement plans for crypto right from day one in office. The incoming president pledged pre-election to position the US as a leader in the crypto sector, including establishing a national strategic Bitcoin stockpile similar to gold. This is in stark contrast to the Joe Biden administration’s regulatory crackdowns and regulatory enforcement actions. If this were to be executed, the US Treasury would have to purchase one million BTC over five years, resulting in a supply crunch. Although direct government BTC buys remain uncertain, prohibiting sales of the US government’s current stash could reduce selling pressure and fortify the top crypto’s position as a legitimate asset class, further incorporating it into global financial markets. According to a Thursday Bloomberg report, Trump is looking to issue a pro-crypto executive order to elevate digital assets to a “national priority” shortly after his inauguration. Sources claim that this could include setting up a new crypto advisory council of industry leaders for policy recommendations. Trump is also expected to address crypto-debanking and repeal a bank accounting policy that compels banks to list crypto assets as liabilities. It’s worth mentioning that the New York Post recently reported that Trump is open to expanding a possible strategic reserve to include a basket of cryptos founded in the U.S., such as USD Coin (USDC), Solana (SOL), and Ripple’s XRP. The Daily Hodl
Beyond Transformers: New AI Architectures Could Revolutionize Large Language Models
Two new neural network designs promise to make AI models more adaptable and efficient, potentially changing how artificial intelligence learns and evolves. The Daily Hodl
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