Barry Silbert’s DCG Faces SEC and DOJ Investigation Over Internal Transfers
Barry Silbert’s Digital Currency Group (DCG) is under investigation by the U.S. Securities and Exchange Commission (SEC) and the Department of Justice. According to a report by Bloomberg, the regulators are investigating DCG’s subsidiary lender Genesis over suspicious internal transfers. DCG has received requests for documents and interviews from prosecutors in the Eastern District of New York. The investigation has yet to become public. A DCG spokesperson told Bloomberg that the company is unaware of any active investigations into its business activities. Silbert has been facing increasing pressure from industry players related to Genesis’ decision to pause loan redemptions and new loan issuance in late November. A week ago, Gemini co-founder Cameron Winklevoss published an open letter accusing Silbert of “bad faith stalling techniques” and the unwillingness to communicate with Gemini. The exchange used Genesis as its Earn program partner. Winklevoss also said that DCG and Genesis are “beyond commingled” and issued an ultimatum to Silbert asking him to publicly commit to solving the issue by January 8. Silbert responded, denying the accusations but offering no public commitment. And it seems like Silbert has failed to meet Gemini’s deadline. It’s unclear what’s going to happen next between Genesis and Gemini. Barry Silbert’s DCG is one of the largest crypto empires in existence. If regulators find illegal activity and DCG goes down, that would mean another reputational blow to the crypto industry. You Might Also Like: Circle’s USDC Reserve Fund Hits $43.4 Billion, BlackRock Now Manages 30% of the Fund
“DCG has a strong culture of integrity and has always conducted its business lawfully. We have no knowledge of or reason to believe there is any Eastern District of New York investigation into DCG,” the spokesperson said.
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Text source: DailyCoin.com
