TechFlow news, January 18 — According to market reports, the U.S. Securities and Exchange Commission (SEC) has charged Digital Currency Group (DCG) and imposed a $38 million penalty due to alleged lending fraud committed by its subsidiary, Genesis.
Genesis, DCG's cryptocurrency lending platform, was once among the largest institutional lending service providers in the crypto industry. In November 2022, the collapse of cryptocurrency exchange FTX intensified market turmoil. During this period, Genesis halted customer withdrawals and filed for bankruptcy protection in January 2023, with estimated assets and liabilities ranging between $1 billion and $10 billion. According to the SEC investigation, Genesis and DCG are accused of concealing financial losses through false statements, affecting over 230,000 investors and involving more than $1 billion in funds.
