Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Soichiro Moro (Moro), previously associated with Genesis Global Trading, Inc, has at least one disclosable event. These events include one tax lien, alleging that Moro recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on January 17, 2025.
The Securities and Exchange Commission (‘Commission’) deems it appropriate that cease and-desist proceedings be, and hereby are, instituted against Soichiro ‘Michael’ Moro (‘Respondent’ or ‘Moro’). In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement which the Commission has determined to accept. The commission finds that In June and July of 2022, Moro, while serving as Chief Executive Officer (‘CEO’) of Genesis Global Capital, LLC (‘Genesis’), negligently engaged in conduct that misled investors in a lending program that Genesis offered and sold to retail investors with another company. Genesis offered investors yield in return for the investors tendering bitcoin or other crypto assets to Genesis. Genesis commingled investors’ crypto assets and typically lent those assets out to institutional borrowers-generating revenue by charging interest to those borrowers. In mid-June 2022, Genesis suffered a significant financial loss-stemming from a large borrower’s default-that put Genesis’s viability as a business at risk. Yet, Moro negligently engaged in conduct that misleadingly downplayed the impact of that default and overstated what Genesis’s parent company, Digital Currency Group (‘DCG’), did to help Genesis in the aftermath. In short, Moro’s failure to exercise reasonable care created a materially false or misleading impression to the public regarding Genesis’s financial health. In November 2022, faced with a wave of redemption requests that it could not satisfy, Genesis suspended withdrawals. It filed for bankruptcy in January 2023.
