US authorities have now opened an investigation into the relationship between Barry Silbert’s Digital Currency Group (DCG) and its subsidiary, Genesis, for any wrongdoing, according to a Bloomberg report citing well-known sources.
According to the report, prosecutors in the Eastern District of New York, along with the United States Securities and Exchange Commission (SEC), are investigating the financial relationship between DCG and the crypto lending arm, Genesis. Authorities also monitor the information provided to businessmen about these transactions.
Although the investigation has not been completed as it is still in the early stages, the DCG or its other assistants have been accused of wrongdoing so far. While it is unclear which of his activities brought him under the watchful eye of the authorities, a DCG spokesperson said, “DCG has a strong culture of integrity and conduct of business. always with integrity.
Interestingly, this discovery by the US authorities follows a statement by Gemini co-founder Cameron Winklevoss that DCG and Genesis are closely related, although Barry says that the two companies working independently. Cameron said this in an open letter while trying to fix his company’s locked $900 Genesis drive.
Genesis – DCG and It’s Subsidiaries are Going Through Difficult Times
Although it is only a day into the new year, cryptocurrency empire DCG and other partners have made some difficult decisions. Last year, the company announced the closure of HQ Digital, one of its wealth management offices.
The company blamed a larger economic environment and a long crypto winter for the closure of the division that holds $3.5 billion in assets under management. Bitvavo, a European crypto exchange is trying to get back nearly $300 million locked in DCG.
In addition, while talking about the economic crisis, Genesis further reduced its workforce by 30% last week after 20% of its 260 employees were laid off due to losses related to crypto hedge fund Three Arrows Capital. The struggling crypto company also spent $1.8 billion on two groups of creditors as reported earlier and is close to filing for bankruptcy.