<p>Digital Currency Group (DCG), a cryptocurrency conglomerate, is being probed by the United States Department of Justice's Eastern District of New York (EDNY) and the <a href="https://www.financemagnates.com/terms/s/securities-and-exchange-commission-sec/" target="_blank" id="3718b4df-fc5f-479a-861e-f52759439c15_1" class="terms__main-term">Securities and Exchange Commission (SEC</a>), a recent Bloomberg report revealed.</p><p>US Authorities Probe Digital Currency Group</p><p>The publication cited people familiar with the matter to reveal that the authorities requested interviews and documents from <a href="https://www.financemagnates.com/cryptocurrency/crypto-lender-genesis-seeks-1b-emergency-loan/" target="_blank" rel="follow">DCG and its subsidiary Genesis Global Capital</a>. The investigations are reportedly focused on the financial links between the two companies.</p><p>The authorities did not file any indictments against the two companies as of press time and did not provide official confirmation on the investigations. However, a DCG spokesperson denied the knowledge of any such ongoing investigations.</p><p>"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," the spokesperson said in a statement shared with media houses.</p><p>Check out the recent London Summit session on "To Crypto or Not to Crypto: Will Crypto Fizzle Out or Here to Stay?"</p><p>Fall Outs of the FTX Collapse</p><p>Earlier, Genesis disclosed that it has $175 million locked in the FTX account. In addition, it triggered a <a href="https://www.financemagnates.com/terms/l/liquidity/" target="_blank" id="47c3bef3-27ee-4953-8504-159e1b829b33_1" class="terms__secondary-term">liquidity</a> crisis in Genesis, and the platform was forced to suspend withdrawals on November 10. Moreover, it hired a restructuring assistant but has yet to move in that direction.</p><p>The reports of the latest investigation came shortly after Cameron Winklevoss, the Co-Founder of the crypto exchange Gemini, accused the CEO of Digital Currency Group, Barry Silbert, of acting "bad faith stall tactics" in resolving the <a href="https://www.financemagnates.com/cryptocurrency/winklevoss-feud-with-genesis-leads-to-earn-users-class-action-request/" target="_blank" rel="follow">payment of a $900 million debt.</a></p><p>However, Silbert denied any debt as the two engaged in a Twitter feud. But, the disagreements between the two crypto tycoons did not stay limited to social media as three Genesis earn users have filed a class action arbitration request against Genesis Global Capital and Digital Currency Group. Furthermore, the Winklevoss twins and their company Gemini is facing another <a href="https://www.financemagnates.com/cryptocurrency/news/gemini-winklevoss-twins-face-class-action-lawsuit-over-lending-products/" target="_blank" rel="follow">class-action lawsuit</a> for failing to register the lending products as securities.</p>
This article was written by Arnab Shome at www.financemagnates.com.
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