Digital Currency Group (DCG) is being investigated over money transfers with its subsidiary Genesis, which is having a tough time.
The destruction caused by the FTX and Terra events continues this year as well. Companies affected by the crypto crash are struggling with liquidity and resource issues. One of them, Genesis, had stopped the lending platform’s withdrawals. Then, in the developing process, the financial situation of the company had to spread to its parent company. Genesis’ parent company, DCG, fell into legal proceedings. An investigation has been launched against DCG by US authorities.
Money Transfers Between DCG and Genesis Investigated
Money transfers between Digital Currency Group (DCG) and its subsidiary Genesis have been investigated. According to a report by Bloomberg, US officials began to examine the company’s internal financial activities.
Details of this investigation have not yet been made public. For this reason, people who did not want to be named gave details about this news to Bloomberg.
Federal prosecutors in Brooklyn focused on money transfers between DCG and crypto lending platform Genesis. Also, according to sources, the SEC was also involved in this investigation.
However, on the other hand, no charges have been brought against the founder of the company and the company yet. In the statement made by the company, it was said;
DCG has a strong culture of integrity and has always conducted its business lawfully. We have no knowledge or reason to believe that there are any New York East District investigations into DCG.
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