US Regulators Probe Digital Currency Group Over Internal Financial Transfers

HomeCrypto regulation
Share this article
Subscribe for weekly updates
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Barry Silbert; Photo Source: David A. Grogan | CNBC

The US Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) have launched investigations into Digital Currency Group (DCG) over internal financial transfers between the firm and Genesis.

In November 2022, Genesis Global Capital halted lending services following FTX’s collapse. According to Bloomberg’s report, Brooklyn officials are currently probing transactions made between DCG and Genesis’ lending branch. 

The SEC has also launched a similar investigation into the firms. Both probes are still in their early stages and have not been made public as of writing.

Digital Currency Group, however, has denied claims of being investigated by the regulators. In the words of the company’s representative,

“DCG has a strong culture of integrity and has always conducted its business lawfully. We have no knowledge of or reason to believe that there is any Eastern District of New York investigation into DCG.”



Get Our Free Newsletter

Subscribe to our newsletter to get tips, our favorite services, and the best deals on Bitcompare-approved picks sent to your inbox


A spokesperson for Genesis also refused to disclose specific details. They claimed that Genesis will cooperate with relevant authorities once it receives inquiries from them.

Meanwhile, Genesis slashed 30% of its workforce as the firm struggles to survive the bearish crypto market. The job cuts were spread across the company and were not limited to a specific department. 

DCG also disclosed its plans to shut down HQ, its wealth management subsidiary, by January 31 a few hours after Genesis announced its layoffs.

Written by
Ayush Pande

The US Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) have launched investigations into Digital Currency Group (DCG) over internal financial transfers between the firm and Genesis.

In November 2022, Genesis Global Capital halted lending services following FTX’s collapse. According to Bloomberg’s report, Brooklyn officials are currently probing transactions made between DCG and Genesis’ lending branch. 

The SEC has also launched a similar investigation into the firms. Both probes are still in their early stages and have not been made public as of writing.

Digital Currency Group, however, has denied claims of being investigated by the regulators. In the words of the company’s representative,

“DCG has a strong culture of integrity and has always conducted its business lawfully. We have no knowledge of or reason to believe that there is any Eastern District of New York investigation into DCG.”



Get Our Free Newsletter

Subscribe to our newsletter to get tips, our favorite services, and the best deals on Bitcompare-approved picks sent to your inbox


A spokesperson for Genesis also refused to disclose specific details. They claimed that Genesis will cooperate with relevant authorities once it receives inquiries from them.

Meanwhile, Genesis slashed 30% of its workforce as the firm struggles to survive the bearish crypto market. The job cuts were spread across the company and were not limited to a specific department. 

DCG also disclosed its plans to shut down HQ, its wealth management subsidiary, by January 31 a few hours after Genesis announced its layoffs.

Written by
Ayush Pande