The report, citing “people familiar with the matter” after Gemini co-founder Cameron Winklevoss made the accusations in an open letter to Digital Currency Group CEO Barry Silbert, was published in New York. Federal prosecutors say they are scrutinizing money transfers between Digital Currency Group and its subsidiary Genesis. global capital.
Report claims digital currency group Genesis Global Capital faces scrutiny from federal prosecutors in New York
according to recent letter From Cameron Winklevoss, co-founder of crypto exchange Gemini, Digital Currency Group (DCG) has until January 8, 2023 to address liquidity issues between Gemini and the lending arm of Genesis Global Capital. Need to resolve. Genesis is reported to have owed a Gemini Earn customer $900 million, and the lending arm of both companies has stopped drawing on him since mid-November. 2022.
Reports have revealed that Genesis was severely impacted by the demise of FTX and Alameda Research, and Gemini was recently notified that it may face a class action lawsuit over the matter. Bloomberg reports that federal agents are involved and are investigating transactions between the Digital Currency Group (DCG) and Genesis. “People familiar with the matter,” who requested anonymity, told the magazine that prosecutors for the Eastern District of New York and the U.S. Securities and Exchange Commission (SEC) are investigating the matter.
Bloomberg reached out to Silbert for comment, and a spokesperson for Digital Currency Group (DCG) responded. “DCG has a strong culture of integrity and has always done business legally. No reason,” a company spokesperson said in a statement. The news outlet also reported that “the SEC and the US Attorney’s Office for the Eastern District of New York declined to comment.”
Bloomberg’s editorial follows a series of reports about alleged investigations into cryptocurrency firms by US authorities that have resulted in, failed or have yet to take place. Reports citing “people familiar with the matter” over the past 12 months say US investigators are investigating. Crypto Readiness Auditor, US taxpayer, Three Arrows Capital, twitter, coin base, binanceWhen Uniswapamong others.
What are your thoughts on the report claiming that Digital Currency Group (DCG) and Genesis are being investigated by US authorities? Let us know what you think about this topic in the comments section below.
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