SEC Fines Digital Currency Group $38 Million and Charges Genesis CEO

The SEC filed cease-and-desist proceedings against Digital Currency Group (DCG) today and fined the company $38 million. The agency has further fined former Genesis CEO Soichiro “Michael” Moro $500,000.

This is potentially the SEC’s last enforcement action before Gary Gensler resigns next week.

SEC Finally Settles with DCG

Digital Currency Group (DCG) has witnessed some major setbacks in the last year, but this new round of prosecution from the SEC is complicating matters. Today, the Commission filed a cease-and-desist order against DCG as a whole, as well as a second order specifically censuring former CEO Michael Moro.

“The Commission deems it appropriate and in the public interest to impose the sanctions agreed to in Digital Currency Group’s Offer. Accordingly, it is hereby ORDERED that… [DCG] cease and desist from committing… any violations… of the Securities Act [and] pay a civil penalty in the amount of $38 million,” the SEC claimed in its filing.

The SEC issued a $500,000 fine for Moro and accused both him and DCG of misleading investors. Neither of the Commission’s documents on the case mentions any criminal penalty for these offenses, but they constitute a stiff warning.

Still, it is important to note that ETF analyst Eric Balchunas called this effort a “last hurrah.” Exiting SEC Chair Gary Gensler has maintained his enduring distate of the crypto industry, even though his tenure will end in two days.

Ripple CEO Brad Garlinghouse recently slammed him for dragging out an SEC case, and it looks like he’s starting a new attack on DCG.

In other words, it’s impossible to say where the feud between the SEC and DCG will be even a week from now. Its Commissioners are actively preparing for a new pro-crypto environment, and part of that includes cooling down prosecutions. This move may ultimately amount to little more than a final tantrum.