Report: Federal Prosecutors in New York Probe Digital Currency Group and Subsidiary Genesis

Following accusations from Gemini co-founder Cameron Winklevoss successful an unfastened missive to Digital Currency Group CEO Barry Silbert, a study citing “people acquainted with the matter” states that national prosecutors from New York are scrutinizing transfers betwixt Digital Currency Group and its subsidiary, Genesis Global Capital.

Report Claims Digital Currency Group, Genesis Global Capital Allegedly Face Scrutiny from Federal Prosecutors successful New York

According to a recent letter from Cameron Winklevoss, co-founder of the crypto speech Gemini, Digital Currency Group (DCG) has until Jan. 8, 2023, to resoluteness liquidity issues betwixt Gemini and the lending portion of Genesis Global Capital. It has been reported that Genesis owes $900 cardinal to Gemini Earn customers and some companies’ lending arms person halted withdrawals since mid-Nov. 2022.

Reports person disclosed that Genesis was impacted severely by the illness of FTX and Alameda Research and Gemini has precocious been informed that it whitethorn look a imaginable class-action suit implicit the matter. Bloomberg states that national investigators are getting progressive and are reportedly looking into transactions betwixt Digital Currency Group (DCG) and Genesis. “People acquainted with the matter,” who requested anonymity, told the work that prosecutors successful the Eastern District of New York and the U.S. Securities and Exchange Commission (SEC) are investigating the issue.

Bloomberg requested a remark from Silbert and a Digital Currency Group (DCG) spokesperson responded. “DCG has a beardown civilization of integrity and has ever conducted its concern lawfully. We person nary cognition of oregon crushed to judge that determination is immoderate Eastern District of New York probe into DCG,” the institution spokesperson said successful a statement. The quality outlet besides reported that “the SEC and US Attorney’s Office for the Eastern District of New York declined to comment.”

The Bloomberg editorial follows a bid of reports astir alleged probes by U.S. authorities into crypto firms that person either resulted successful enforcement, ne'er materialized, oregon person yet to travel to fruition. In the past 12 months, reports citing “people acquainted with the matter” person stated that U.S. investigators are probing crypto reserve auditors, U.S. taxpayers, Three Arrows Capital, Twitter, Coinbase, Binance, and Uniswap, among others.

What bash you deliberation astir the study that alleges Digital Currency Group (DCG) and Genesis are being investigated by U.S. authorities? Share your thoughts connected this taxable successful the comments conception below.

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