world’s largest crypto- regarding companies under the Biden administration. SEC He is doing his last work. Essentially, I can say that we are experiencing one of the days when gray area criminals in the last bear market were punished. Sanction decisions for both Genesis and DCG came one after another.
SEC and Latest Crypto Moves
Before BlackRock entered the cryptocurrency business, the largest company in this field was the holding company DCG. There were many major crypto-related companies underneath. While crypto trusts like GBTC are issued via DCG’s Grayscale genesis with the biggest cryptocurrency They were making a profit as a lender.
But in the collapse of 2022 genesis He was unable to get back the money he gave to high-risk crypto gamblers. So he started a bankruptcy plan. Since we lived through those days, I don’t need to remind you of every minute of it. Today, Genesis CEO faced sanctions from the SEC. However, this situation is not that bad for cryptocurrencies. DCG, on the other hand, will pay a fine of $38 million for lying to investors regarding the $1 billion loan relationship that caused controversy at the time.
“DCG misled investors in a loan program operated through its subsidiary, Genesis Global Capital (GGC). GGC earned interest by lending investors’ crypto assets to institutional borrowers, but mixed some of the assets. 3AC (Zu Shu’s company, you remember), one of GGC’s largest debtors, failed to repay the $2.4 billion loan in June 2022. In June 2022, GGC and DCG executives made statements containing inaccurate information about the company’s financial condition. GGC’s balance sheet was artificially strengthened by issuing a $1.1 billion promissory note, but this was not disclosed to investors. DCG’s activities violated Section 17(a)(3) of the Securities Act (misleading investors). The company materially misled investors by making false public statements. DCG agreed to pay a $38 million fine.” – SEC Filing
There is no need to panic, and the Biden SEC now appears to be clearing its remaining crypto-related business before Trump hands the agency over to the SEC. But silkroad If its assets were sold at the last minute, it would be a big nonsense. In fact, since the Ministry of Justice, which has an agreement with Coinbase Prime, will make the sale through this channel, Coinbase may extend this work until Trump takes office.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
