Coin Gabbar Token

<h2 id="header-0">A day after Digital Currency Group (DCG) announced the closure of its wealth management unit, US authorities initiated an investigation into the company&#39;s internal financial activities.</h2>DCG is the parent company of Grayscale as well as the crypto lender Genesis, both of which are experiencing severe <a href="https://www.coingabbar.com/en/crypto-blogs-details/what-are-liquidity-crisis-in-crypto-understanding-its-significance" rel="noopener noreferrer nofollow">liquidity crises</a>. As per sources familiar with the situation, federal officials in Brooklyn are now investigating internal transfers between DCG and its troubled subsidiary Genesis. They are also investigating what information DCG supplied to investors about the transfers.Sources said that prosecutors have begun investigating the company&#39;s internal documents, and the US SEC has also joined the investigation. The investigations are still in their early stages, and neither DCG nor Barry Silbert has been charged with any misconduct. The firm commented on the development, saying:“DCG has a strong culture of honesty and has always operated legally. We have no knowledge of, or reason to think, that DCG is being investigated by the Eastern District of New York.”Furthermore, DCG&#39;s struggling subsidiary stated that it will not comment on any specific legal or regulatory difficulties. “When Genesis receives questions, it maintains a regular dialogue and cooperates with relevant regulators and authorities,” it added.Regulators such as the United States Securities and Exchange Commission and the United States Attorney&#39;s Office for the Eastern District of New York have yet to comment.<h3 id="genesis-drags-dcg-into-trouble">Genesis Drags DCG Into Trouble</h3>After the collapse of the cryptocurrency exchange FTX, Genesis encountered significant difficulties. <a href="https://www.coingabbar.com/en/crypto-currency-news/after-ftx-voyager-and-celsius-its-blockfi-is-genesis-next" rel="noopener noreferrer nofollow">Genesis halted all withdrawals</a> last month due to liquidity concerns, forcing parent company DCG into the conflict.However, DCG has remained silent, claiming that Genesis&#39; issues are their own and that it runs as an independent firm. DCG founder Barry Silbert revealed in a letter to shareholders in November 2021 that he got $575 million in loans from Genesis Global Capital that are due in May 2023.Silbert stressed that these intercompany loans were routine commercial transactions that were always structured on an arm&#39;s length basis and priced at market interest rates.But crypto exchange Gemini has responded harshly to Digital Currency Group, claiming that it has more than $900 million in deposits from its earn program with Genesis.Cameron Winklevoss, the co-founder of Gemini, accused Silbert of delaying efforts to address the situation. He also said that both DCG and Genesis are &#34;beyond commingled&#34;.Read also: <a href="https://www.coingabbar.com/en/crypto-currency-news/sbf-files-for-return-of-56-million-hood-shares" rel="noopener noreferrer nofollow">SBF Files for Return of 56.3 Mn HOOD Shares</a>

DCG's Crypto Empire Is Under Investigation by US Authorities

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