• The U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) have opened investigations into Barry Silbert’s Digital Currency Group (DCG).
• The investigation focuses on internal money transfers and loans between DCG, its investors, and a subsidiary.
• DCG has stated it has „always conducted its businesses lawfully.“
The U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) have launched an investigation into Barry Silbert’s Digital Currency Group (DCG). The probe will focus on internal money transfers and loans between DCG, its investors, and a subsidiary.
The DOJ and the SEC have asked for documents and interviews in regard to the situation and have declined to comment on the matter. A DCG spokesperson commented on the matter upon Silbert’s request and stated: “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 investigation also includes DCG investors and is intended to discover whether they were informed regarding these transfers and internal loans. At the moment, neither DCG nor Silbert are accused of any wrongdoing. However, the investigation is active and prosecutors are continuing to collect information and documents.
Genesis, a crypto lender and a subsidiary of the DCG, is also involved in the investigations. Genesis has stated it does not comment on specific legal matters, but that it “maintains a regular dialogue and cooperates with relevant regulators.”
The investigations into Silbert’s DCG come as the crypto industry is facing increased scrutiny from the United States government. Recently, the US Treasury Department has been working to implement crypto regulations, with the aim of combating money laundering and terrorist financing.
The investigations into Silbert’s DCG could have serious implications for the crypto industry as a whole, depending on the outcome. As the investigation continues, more information will become available and it will be interesting to see how the situation unfolds.