Digital Currency Group reportedly being investigated by US authorities
A spokesperson for DCG stated that they were unaware of the investigation and that the company has always conducted its business lawfully
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The US Securities and Exchange Commission (SEC) and the US Department of Justice's Eastern District of New York are reportedly investigating Digital Currency Group (DCG), a crypto conglomerate.
The authorities are reportedly investigating internal transfers between DCG and its subsidiary, Genesis Global Capital, a crypto lending firm. The investigation involves both the Department of Justice and the Securities and Exchange Commission, and both companies have reportedly been asked for interviews and documents.
A spokesperson for DCG stated that they were unaware of the investigation and that the company has a rooted culture of integrity and has always conducted its business lawfully.
No indictment has been brought against DCG, nor has either the United States Department of Justice or the Securities and Exchange Commission provided any information about the case.
Genesis Global Capital has experienced financial difficulties following the collapse of FTX in November. According to the company's disclosure on November 10, it has $175 million locked up in an FTX trading account. As a result, Genesis halted withdrawals on November 16 due to liquidity issues and has enlisted the help of investment bank Moelis & Company to restructure.
