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.
This is a breaking news, please check back for updates!!!
The post Breaking: Digital Currency Group to Pay $38M in US SEC Settlement appeared first on CoinGape.
