Security and Exchange Commission (SEC), along with United States authorities and the Department of justice’s Eastern District of New York (EDNY), are working together to investigate the clashing Digital Currency Group (DCG) and its subsidiary, which is almost bankrupt, genesis. 

The US authorities opened an investigation to examine the funds’ transfer between both companies, per the reports.

Digital Currency Group is a venture capital company focusing on the digital currency market, and it boasts various firms in the digital currency ecosystem, making it its subsidiary. The subsidies of DCG include Foundry, media outlet Coindesk, Coindesk, Bitcoin mining company, grayscale investment, and crypto exchange Luno.

The DoJ regulators have sent interview invites to the concerned people and have sent documents for review as per the reports. With the internal transaction under review, the SEC is reportedly making the same probes. The company and its Chairman, Barry Silbert have not been accused of anything wrong, as per the reports.

The Digital Currency group said in a statement that the company has not yet seen any probe from any of the regulators.

The company stated, “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.” 

Whereas genesis has not commented on any current legal proceedings. It said, “Genesis maintains a regular dialogue and cooperates with relevant regulators and authorities when it receives inquiries.”

In Web3, the crypto winter has brought various issues in the structure and functionalities of many firms in the crypto industry. The collapse of FTX Derivatives Exchanges created more financial irregularities in DCG and Genesis.

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