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U.S. Opens Probe Into DCG and Genesis

According to new Bloomberg reports, U.S. authorities have opened an investigation into Digital Currency Group (DCG) and its subsidiary Genesis.

By Mike Hesp
• 1 min read
U.S. Opens Probe Into DCG and Genesis

According to new Bloomberg reports, U.S. authorities have opened an investigation into the Digital Currency Group (DCG) and its subsidiary Genesis.

According to the report, federal prosecutors want to take a closer look at internal cash flows in New York between the affiliated entities. The Securities and Exchange Commission (SEC) is reportedly involved as well. The investigation is said to still be in an early stage, but was started before the FTX collapse in November last year.

Meanwhile, DCG says it is not aware of any investigation, according to Bloomberg. The company, however, reiterated that they have always complied with the law.

The pressure on the crypto group continues to mount

The pressure on the crypto group appears to be rising further. Gemini exchange customers recently filed a class-action lawsuit against DCG. They accuse the company of concealing the subsidiary's bankruptcy.

Additionally, Gemini CEO Cameron Winklevoss recently accused DCG in an open letter of "pathetic delaying tactics." Meanwhile, Gemini's customer funds worth $900 million are stuck with Genesis. Winklevoss thus gave DCG chief Barry Silbert an ultimatum to settle the debt.

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