Federal Prosecutors and SEC Investigate Digital Currency Group and Genesis Amidst Gemini Dispute and Staff Layoffs

Prosecutors in the eastern district of new york, along with the sec, are reportedly investigating digital currency group (dcg) and its lending subsidiary genesis. claims that dcg and genesis were under investigation began to circulate on twitter this past wednesday, after a dcg whistleblower tipped off the sec. neither dcg nor its chief executive barry silbert have been accused of any criminal conduct.

Investigation began prior to the sudden collapse of cryptocurrency exchange ftx in november. recently, genesis has been facing pressure from gemini, which is owed $900 million by the lending platform. in response, interim ceo derar islim of genesis stated that they are “focused on finding a solution” to their borrowing and lending intermediation business. consequently, genesis had to lay off 30% of its staff this past thursday.

Received a $1.1 billion promissory note due in 2023 from three arrows capital’s liquidation in july. the parent company also has $575 million worth of intercompany loans due to genesis in may. cameron winklevoss, a co-founder of gemini, has accused genesis’ founder barry silbert of “bad faith stall tactics” to avoid repaying the amount. according to a company spokesperson, the layoffs are part of their efforts to move the business forward. dcg did not respond to requests for comment.


By Evey Lovelace

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