DCG’s Internal Transactions are Under Investigation by the U.S Investigative Authorities
DCG is being investigated for the internal movement of assets with Genesis Global Capital
The DCG group has explicitly made it clear that they are not aware of any such investigation
This report has come out at a time when cryptocurrencies are trying to recover from a deep bear market
The U.S Security Exchange Commission and other investigative
Authorities continue to probe into leading crypto businesses. This time Digital Currency Group, a $50 billion worth crypto conglomerate, is under the radar of the Department of Justice’s Eastern District of New York.
DCG is being investigated for the internal movement of assets with Genesis Global Capital, a crypto lending firm and a subsidiary of Digital Currency Group. According to a report released by a trusted source, the investigators have already requested interviews of key figures and documents from both companies.
However, the DCG officials have said that they are not aware of any such investigation either from the district court of New York or the Security Exchange Commission.
“DCG has a strong culture of integrity and has always conducted its business lawfully. We have no knowledge of or reason to believe that there is any Eastern District of New York investigation into DCG.”
– A Spokesperson, Digital Currency Group
The DCG group has explicitly made it clear that they are not aware of any such investigation and had always conducted their business lawfully. However, the past two months had been terrible for the crypto lending firm, Genesis Global Capital.
Genesis was one of the worst-hit companies after the FTX collapse as it had $175 million locked up in FTX. Genesis also owed $900 million to Gemini, a crypto exchange that it could not repay. Apart from that Genesis Global Capital had also given a loan of $2.36 billion to Three Arrow Capital, which collapsed right after the LUNA crash. Genesis was already struggling to recover from this gigantic loss when FTX crashed. Right now, Genesis is working with Moelis & Company, to restructure its operation and get over the last few turbulences.
According to the sources, this investigation started back in November, right before the FTX collapse, however, nothing came out in public.
This report has come out at a time when cryptocurrencies are trying to recover from a deep bear market. Even though DCG is confident about its compliance, any actions from investigative agencies could not be completely baseless.
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