Barry Silbert’s Digital Currency Group Settles SEC Charges for $38 Million: Details Revealed

The leading cryptocurrency venture capital firm, Digital Currency Group (DCG), headed by well-known “crypto king” Barry Silbert, has been accused of deceiving investors, as per a recent filing made by the U.S. Securities and Exchange Commission (SEC).

Under the terms of its agreement with the Securities and Exchange Commission, DCG must remit a fine of $38 million in the next fortnight.

According to the SEC, the venture capital giant “failed to exercise due care in their actions, leading investors to be deceived” through a lending program provided by Genesis Global Capital, one of their affiliates.

As an analyst, I have come across allegations that Global Guardian Capital (GGC) has been earning income by pooling together investor’s assets and providing loans to institutional debtors. This practice, if true, could potentially raise concerns about the transparency and management of these investments.

Following the default by a substantial lender (Three Arrows Capital), Digital Currency Group played down the impact or gravity of this occurrence.

GCG ended up filing for bankruptcy in early 2023 after failing to fulfill redemption requests. 

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2025-01-17 20:37