The US Securities and Exchange Commission (SEC) has accused cryptocurrency venture capital giant DCG, which is headed by “crypto king” Barry Silbert, of misleading investors, it said on Friday. Deposit.

DCG will have to pay a $38 million civil money penalty to the SEC within the next 14 days as part of a settlement deal with the regulator.

It is worth noting that Silbert himself was not named by the SEC.

The SEC said the venture capital giant "negligently engaged in conduct that misled investors" through a lending program offered by Genesis Global Capital (GGC), an affiliate of the company.

GGC has been accused of generating revenue by commingling investors' assets and lending them to institutional borrowers.

After a major borrower (Three Arrows Capital) defaulted on a margin call, DCG downplayed the seriousness of this development.

GCG ended up filing for bankruptcy in early 2023 after failing to meet recovery requests.

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