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Sunday, February 5, 2023

The U.S. Department of Justice has launched an investigation into whether the internal trading practices of DCG and its subsidiaries are illegal

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According to Bloomberg News , the internal fund transfer of Digital Currency Group (DCG) and its transactions with its subsidiary Genesis have attracted the attention of the US Department of Justice. The US Department of Justice has requested interviews with DCG personnel and provided relevant documents to assist in the investigation. , DCG founder and CEO Barry Silbert was also implicated, and the US Department of Justice is investigating the case.

Just entering 2023, DCG has become the target of public criticism two times in a row. First, the Winklevoss brothers publicly accused DCG of maliciously defaulting on Gemini customers’ 900 million US dollars in assets. Later, Zhu Su, the founder of Three Arrows Capital, joined the battle and revealed that DCG suffered heavy losses due to the bankruptcy of Three Arrows. , “left-handed right-handed” shady patching loopholes, plus Gemini users filed a class action lawsuit against DCG, a series of scandals broke out one after another, and also made DCG Group, which once “covered the sky with one hand” in the currency circle, fall into a quagmire and crumble.

Subsequently, on January 6, it was reported that DCG announced the closure of its wealth management subsidiary HQ Digital , while Genesis, another subsidiary on the brink of bankruptcy, was also undergoing a second round of layoffs and was considering filing for bankruptcy.

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