Digital Currency Group to pay $38.5 million to the SEC for misleading investors.

• Barry Silbert's crypto firm, Digital Currency Group, has agreed to pay the SEC $38.5 million for misleading investors.
• On Friday, the SEC announced that DCG and Soichiro "Michael" Moro, the former CEO of Genesis Global Capital, will pay civil penalties.
• The collapse of FTX in 2022 led to the industry contagion and resulted in Genesis, a business that was once at the center of DCG, being among the casualties.

The crypto firm Digital Currency Group, founded by Barry Silbert, and a former executive of a defunct unit have agreed to pay the SEC $38.5 million to settle charges of misleading investors.

The agency announced on Friday that DCG and Soichiro "Michael" Moro, the former CEO of crypto lender Genesis Global Capital, will pay civil penalties to settle charges of misleading investors about Genesis's financial condition.

In January 2023, Genesis, a business that was once central to DCG, filed for Chapter 11 bankruptcy protection due to the industry contagion triggered by the collapse of FTX.

"According to Sanjay Wadhwa, acting director of the SEC's Division of Enforcement, it is crucial for companies and their officers to speak truthfully to the investing public, particularly during times of financial instability or turmoil. The Commission discovered that DCG and Moro did not meet this standard."

Wadhwa stated that DCG and Moro presented a deceptive optimistic portrayal of the company's financial difficulties.

The commission's statement stated that DCG and Moro are paying the penalties without admitting or denying the SEC's findings that they violated the Securities Act of 1933.

DCG didn't immediately respond to a request for comment.

In May 2024, Genesis settled with New York Attorney General Letitia James for $2 billion to compensate defrauded investors.

WATCH: Crypto broker Genesis files for Chapter 11 bankruptcy