The US Securities and Exchange Commission (SEC) has filed a lawsuit against Digital Currency Group (DCG) for allegedly misleading investors. According to the markets regulator, the firm failed to disclose the extent of its exposure to Three Arrows Capital (3AC), the defunct hedge fund, thus, exposing investors.
The Digital Currency Group Settlement With US SEC
According to the lawsuit filing, the markets regulator said DCG has already submitted an Offer of Settlement as part of the proceedings. With this, the investment giant will pay $38 million.
“In mid-June 2022, a large borrower defaulted on a margin call, which compromised GGC’s business,” the SEC said in a filing on Friday. “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 GGC in the aftermath.”
Meanwhile, this lawsuit comes as the Grayscale Investments parent company initiated a move to expand its list of subsidiaries.
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Godfrey Benjamin
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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