New Development in Digital Currency Group Crisis: US Prosecutors Investigating DCG and Genesis

According to people familiar with the matter, in the report of Bloomberg, US officials said that Barry Silbert, CEO of Digital Currency Group (DCG) cryptocurrency explores the internal financial affairs of his empire.

US Federal Prosecutors Examine Transfers Between Digital, Digital Currency Group, and Genesis

Digital Currency Group Inc. of federal prosecutors in Brooklyn. People who said they were reviewing transfers between the company and the embattled Genesis subsidiary, which provides crypto lending services, asked not to be named as the investigation was not made public. Prosecutors are also investigating what investors were told about these transactions.

One of the sources said prosecutors began to request interviews and documents. Another person stated that the Securities and Exchange Commission (SEC) is also conducting an investigation. Investigations are still in the early stages and neither Silbert, nor Digital Currency Group, nor any of its subsidiaries have been charged with crimes.

Silbert passed the request for comment to a DCG spokesperson. “DCG has a strong culture of integrity and has always conducted its business lawfully,” the company said in a statement. We have no knowledge or reason to believe that there are any investigations into DCG in the Eastern District of New York.”

Genesis, the company’s loan services subsidiary, said in a statement that it did not comment on specific legal or regulatory issues. “Genesis regularly engages in dialogue and cooperates with relevant regulatory bodies and authorities when questions are asked,” the statement said.

The SEC and the U.S. Attorney’s Office for the Eastern District of New York declined to comment. In particular, it is unclear which intercompany activity is under scrutiny.

Someone close to the criminal investigation said the investigation into Silbert’s company began before FTX’s collapse.

*Not investment advice.