Journalists report that US authorities are investigating DCG’s activities

SEC and the U.S. Department of Justice are beginning to examine the nature of Digital Currency Group’s interactions with its subsidiary OTC platform Genesis Global Capital. Bloomberg reports this, citing informed sources.

Investigators have interviewed employees and requested documents from the firms. The SEC is conducting a similar investigation at an early stage.

Officials declined to comment. As of writing, no charges have been filed.

«DCG […] has always conducted its business lawfully. We have no information or grounds to believe that […] there is any investigation into the company», — a representative said.

Genesis said it is maintaining ongoing dialogue with regulators.

Earlier in the community appeared concerns about the resilience of the group of companies in the wake of the collapse of FTX.

On November 16, the crypto-lending platform froze withdrawals and disbursement of new loans, and later unsuccessfully attempted to raise emergency financing of $1 billion.

In December, reports circulated about increased to $1.8 billion demands against the platform.

Half of the aforementioned amount went to Gemini clients, which chose Genesis as partner for the Earn lending program. Gemini co-founder Cameron Winklevoss, in an open letter urged DCG CEO Barry Silbert to pay the full amount by January 8.

As reported by the press, Genesis Global Capital is considering filing for bankruptcy.

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