Following accusations by Gemini co-founder Cameron Winklevoss in an open letter to Digital Currency Group CEO Barry Silbert According to the report, which cites “people familiar with the matter,” federal prosecutors in New York are scrutinizing money transfers between Digital Currency Group and its subsidiary, Genesis Global Capital.
The report claims that Digital Currency Group and Genesis Global Capital are facing scrutiny from federal prosecutors in New York
According to a recent letterfrom Cameron Winklevoss, co-founder of crypto exchange Gemini, Digital Currency Group (DCG) has been working with Gemini and Genesis Global Capital on a liquidity have until January 8, 2023 to resolve the issue. Genesis reportedly owes $900 million to Gemini Earn customers, and both companies’ lending units have suspended withdrawals since mid-November 2022.
Reports reveal that Genesis has been severely affected by the collapse of FTX and Alameda Research, and Gemini was recentlyinformed that it could face a potential class action lawsuit over the matterBloomberg reports that federal agents are involved and are investigating the transaction between Digital Currency Group (DCG) and Genesis, Bloomberg reported.“People familiar with the matter,” who asked to remain anonymous, toldthe publication that prosecutors from 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 culture of integrity and has always conducted its business legally. We have no knowledge of the Eastern District of New York investigation against DCG and have no reason to believe so,” a company spokesperson said in a statement. The news outlet also reported that “the SEC and the U.S. Attorney’s Office for the Eastern District of New York declined to comment.”
Bloomberg’s editorial follows a series of reports about alleged investigations by U.S. authorities into crypto companies that have either resulted in enforcement actions or have not yet come to fruition. Over the past 12 months, the report, citing “people familiar with the matter,” states that U.S. agents are investigatingcrypto preparation auditors , U.S. taxpayers , Three Arrows Capital , Twitter , Coinbase , Binance 53} Uniswap
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