Hi HODLers,
Image Source
Bloomberg reported late Friday that:
Officials with the U.S. Department of Justice's Eastern District of New York (EDNY) and the U.S. Securities and Exchange Commission are examining transfers between Digital Currency Group and the conglomerate's Genesis subsidiary,
As of now it seems that neither DCG nor Genesis have "been accused of wrongdoing."
This inquiry is aimed at the financial interplay between DCG and Genesis.
One Three Arrow Capital Hedge Fund exploded, Genesis faced substantial losses of around $1.2bn! DCG assumed these losses for Genesis.
Later, in November, Genesis announced it was suspending withdrawals from its earn platform. This had knock-off effect to other industry behemoths such as Gemini which was relying on it for services it offered.
Gemini and DCG's CEOs have been arguing online over the liquidity issues they both face.
As of early December,
Genesis creditors had made claims totaling upward of $1.8 billion
DCG is also facing issues with its subsidiary Grayscale and its Bitcoin trust product.
There is currently a 50% discount on Grayscale's Bitcoin Trust, this indicates a very important lack of trust in the product.
As a reminder, stay safe out there and diversify places where you store/hold your cryptocurrencies.