Plato Data Intelligence.
Vertical Search & Ai.

Federal Prosecutors and SEC Probing Crypto Titan Digital Currency Group: Report


Federal authorities are reportedly investigating the internal finances of crypto giant Digital Currency Group (DCG).

According to a new report by Bloomberg, anonymous sources familiar with the matter say that prosecutors from New York are probing the transactions between DCG and Genesis, a crypto lending subsidiary of the firm, as well as what customers were told about those transfers.

Another person close to the issue also tells Bloomberg that the U.S. Securities and Exchange Commission (SEC) is also investigating DCG.

The investigations are still in their early stages and neither DCG nor billionaire CEO Barry Silbert have been accused of any wrongdoing yet, the report says. A spokesperson for DCG told Bloomberg that the firm has never conducted business outside of the law.

“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.”

Silbert’s crypto empire started to face liquidity issues in November after it halted customer withdrawals, citing the downfalls of digital asset hedge fund Three Arrows Capital and prominent crypto exchange FTX. Later that month, reports surfaced that Genesis sought a $1 billion loan prior to the announcement that clients would be unable to take out their funds.

A report also revealed that DCG owes Genesis a total of $1.7 billion in loans.

Silbert tells Bloomberg that the loans between DCG and Genesis were ordinary and “always structured on an arm’s length basis and priced at prevailing market interest rates.”

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Check Latest News Headlines

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Boombastic
Generated Image: StableDiffusion


Latest Intelligence