The person familiar with the matter claims that US authorities did not accuse Genesis or DCG "of wrongdoing."
The Securities and Exchange Commission (SEC) and thhhe United States Department of Justice’s Eastern District of New York (EDNY) have reportedly launched an investigation into venture capital firm Digital Currency Group (DCG).
According to the Bloomberg report shared on January 7th, the US authorities are looking into the transfers made between Digital Currency Group and its subsidiary Genesis Global Capital.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
What is AVAX? (Avalanche Network Explained With Animations)
The person familiar with the matter revealed to Bloomberg that EDNY is asking Digital Currency Group and Genesis to attend EDNY-hosted interviews and provide certain documents. On top of that, it appears that the SEC is taking similar initiatives to look into the relationship between DCG and Genesis.
The Bloomberg report noted that the person familiar with the matter highlighted that neither Genesis nor DCG was “accused of wrongdoing.”
In response to surfacing allegations that US authorities are investigating DCG, the company’s spokesperson noted:
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.
On the other hand, when asked about the investigation, Genesis noted that it does not comment on legal and regulatory issues. Moreover, Genesis' spokesperson stated that the company maintains a dialogue and cooperates with regulators when it receives requests for documents or other information.
The past week was rather difficult for Digital Currency Group (DCG). On January 2nd, cryptocurrency exchange Gemini’s co-founder Cameron Winklevoss used Twitter to share an open letter to Digital Currency Group (DCG) CEO Barry Silbert.
In the letter, Gemini's co-founder claimed that DCG-owned Genesis owes Gemini $900 million. According to Winklevoss, Gemini lent Genesis almost $1 billion as a part of the Gemini Earn program. Moreover, Winklevoss believes that DCG owes Genesis around $2 billion.
Barry Silbert responded to the tweet, claiming that DCG has never borrowed money from Genesis or failed to make “interest payment to Genesis.”
On January 3rd, Three Arrow Capital founder Su Zhu used Twitter to make several allegations against Digital Currency Group. Zhu claimed that DCG and FTX joined forces to “attack Luna and stETH.”
