On January 18, according to market news, Digital Currency Group (DCG) was charged and fined $38 million by the U.S. Securities and Exchange Commission (SEC) for its subsidiary Genesis’ lending fraud.
BlockBeats Note: Genesis is a cryptocurrency lending platform under DCG and was once one of the largest institutional lending service providers in the crypto industry. In November 2022, the collapse of cryptocurrency trading platform FTX exacerbated market turmoil. Genesis suspended customer withdrawals during this period and filed for bankruptcy protection in January 2023, with assets and liabilities valued at between $1 billion and $10 billion. According to the SEC investigation, Genesis and DCG were accused of covering up financial losses through false statements, involving more than 230,000 investors and a total amount of more than $1 billion.
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