New York Attorney General Launches Investigation into DCG’s Connections with Genesis: Report
New York Attorney General Letitia James is actively investigating Digital Currency Group (DCG), led by Barry Silbert. Due to its previous association with the now-bankrupt crypto lender Genesis Global Capital.
DCG, the parent company of Genesis, has come under scrutiny following Genesis’ bankruptcy filing after substantial losses incurred from the downfall of crypto hedge fund Three Arrows Capital (3AC) and digital asset exchange FTX. Bloomberg’s report reveals that Attorney General James has been soliciting information from former Genesis executives, including ex-chief risk officer Michael Patchen. Federal prosecutors and the U.S. Securities and Exchange Commission (SEC) have initiated their own inquiry and are seeking discussions with potential witnesses connected to both Genesis and DCG.
Central to the investigation is a $1.1 billion promissory note, cited by Silbert as a measure to absorb liabilities from Genesis related to the 3AC collapse. While the investigation’s details were not publicly disclosed, its potential outcomes and the likelihood of complaints being filed remain uncertain. Earlier this year, Gemini raised concerns over Silbert and DCG, alleging a default on a $630 million debt payment to the cryptocurrency exchange.
Clever Robot News Desk 8th August 2023
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