Digital Currency Group (DCG) has agreed to settle charges with the SEC for $38 million over alleged misconduct related to its bankrupt Genesis Global Capital lending unit. The SEC accused DCG of negligence and intentionally misleading investors about Genesis's financial health following a significant default by Three Arrows Capital, a crypto hedge fund. Despite knowing about a potential loss of over $1 billion due to this default, DCG reportedly downplayed the situation. Former Genesis CEO Michael Moro will also pay a $500,000 settlement in connection with these allegations. This settlement comes as the SEC continues to scrutinize cryptocurrency companies for their communications with investors, particularly during periods of financial distress.

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