The U.S. Department of Justice (DOJ) and Securities and Exchange Commission (SEC) have launched an investigation to investigate internal transfers and loans of Barry Silbert’s Digital Currency Group (DCG). bloomberg news.
Prosecutors are investigating transfers to and from the company’s subsidiary DCG, which has asked not to be named because the investigation has not yet been made public. The investigation also included DCG investors, with the goal of determining whether they were informed of these transfers or internal loans.
A DCG spokesperson commented on the matter at Silbert’s request, telling Bloomberg:
“DCG has a strong culture of integrity and has always done business legally.
At this time, neither DCG nor Silbert have been accused of any wrongdoing. However, the investigation is active, and the prosecution is conducting interviews and requesting materials. The SEC and DOJ declined to comment on this matter.
Crypto lender Genesis was also involved in the investigation as one of DCG’s subsidiaries. The company said it does not comment on specific legal matters, adding:
“Genesys maintains regular dialogue and will cooperate with relevant regulators and authorities when inquiries are received.”
DCG was hit hard by Genesis’ financial troubles. Additionally, Genesis was heavily impacted by the collapse of Three Arrows Capital (3AC), one of his companies that declared bankruptcy after the Terra Luna crash.
The collapse of FTX months later did not help Genesis’ recovery process. Shortly after FTX collapsed, Genesis suspended customer withdrawals on November 16th. Then, on Jan. 5, the lender laid off his 30% of staff and could file for Chapter 11 bankruptcy, saying it was trying to cut costs and increase efficiency. suggested that
Trouble with Genesis led to cryptocurrency exchange Gemini. Gemini’s founders, his Winklevoss twins, say Silbert owes his Genesis $1.675 billion and part of this division belongs to users of his Gemini’s Earn program. claimed.
Silbert replied to the twins, stating that the DCG had no outstanding debts to Genesis, but the twins refused to accept, telling Silbert that he and the DCG were “innocent bystanders, has nothing to do with it.” I asked him to stop pretending. This confusion.