Investigation against the Digital Currency Group

The New York State Attorney's Office is investigating Digital Currency Group. At issue are connections to insolvent cryptocurrency lender Genesis.

The New York Attorney General's Office has opened an investigation into the Digital Currency Group. As Bloomberg reports, involves money allegedly received by bankrupt crypto lender Genesis as a result of the bankruptcy of hedge fund 3AC.

According to the report, loans and transactions between the companies are under investigation. The Digital Currency Group took out a loan of about $575 million from Genesis last year.

Also under investigation is a letter from DCG CEO Barry Silbert to shareholders. In it, he mentions a promissory note worth $1.1 billion created by assuming liabilities from Genesis.

According to Bloomberg, it is not yet known whether charges will be filed.

Digital Currency Group is a staggering heavyweight in the crypto industry. It has 200 subsidiaries, including Grayscale and Coindesk.