The Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) are reportedly investigating Crypto conglomerate Digital Currency Group (DCG) for potential wrongdoing.
According to a report by Bloomberg, the investigation centres around financial transactions between DCG and Genesis. It is unclear at this time which other specific actions or activities are being examined by the DOJ and SEC.
The investigation may have been prompted by Cameron Winklevoss’s open letter to DCG head Barry Silbert that was published a few days ago.
What Next for DCG?
DCG is a leading investment firm in the cryptocurrency space, with 5 subsidiaries including companies such as Genesis and Grayscale. The company has not yet commented on the investigation.
According to the report by Bloomberg, the Eastern District of New York office of the DOJ is requesting interviews and documents from DCG and Genesis as part of an ongoing investigation. The SEC is also reportedly conducting its own inquiry. No wrongdoing has been alleged at this time. The focus of the investigation appears to be the financial relationship between Genesis and DCG.
Future Regulations and Scrutiny
It is worth noting that the DOJ and SEC have increased their focus on the cryptocurrency industry in recent years, with a number of high-profile cases and enforcement actions being brought against individuals and companies in the space.
This investigation adds to the growing list of regulatory challenges facing the cryptocurrency industry. It remains to be seen how the outcome of this investigation will impact DCG and the wider industry.
Article written by JayXBT, tweets below
